Significant doubt has been cast about the future of Harry
& David. In its latest financial statement, the US gifts
marketer, famed for its fruit baskets, reported that net sales
for the 13-week period ended 25th December fell 1.8 percent to
$262.1 million (£163.1 million). Meanwhile, gross profit
slumped 20.6 percent from the prior comparable period to $104.2
million (£64.8 million). For the 26-week period to 25th
December, Harry & David recorded a $4.4 million net loss,
compared with a $9.9 million net profit for the same period 2009.
Based on the company’s current working capital and anticipated
working capital requirements, said the statement, Harry & David
will not be able to “finance continuing
operations”.
Global revenues at cosmetics marketer Avon rose
a scant 1 percent to $3.2 billion (£1.99 billion) in the
fourth quarter 2010, compared with the same period the previous
year. “Service disruptions” in Brazil and a weak
performance in Russia contributed to a disappointing sales result
for the company. In the UK, however, revenue was up 3 percent on
last year. Operating profit also declined during the period,
falling 13 percent to $356 million (£221.6 million),
compared with a year ago.
In the full year, the results were more encouraging-up 6 percent
to $10.9 billion (£6.78 billion). Full-year operating profit
was $1.1 billion (£684.6 million), up 7 percent compared
with 2009.
The Sky News blog looks at the next generation of
online fashion retail entrepreneurs including
ShopStyle‘s Andy Moss, and Alexander Halldin,
cofounder of Mylovebasket.com.
Uniqlo and John Lewis also get
a mention.
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