Lessons from Laura Ashley
- This is a preview of the essay.
To view the full text you must login!
Lessons from Laura Ashley
Prelude: Back in January, it looked as if Flower Power
was in a terminal wilt as Laura Ashley's stock was
pummelled down, reaching an all-time low of 19.5p
after reporting declines in like-for-like sales of 3%
and a second half trading loss of 23-26 million
before restructuring costs. Today the shares have
recovered slightly to 32p, but this is still a company
in severe trouble. Ketan Vora (KKILogic@aol.com)
considers where Laura Ashley has gone wrong and draws
some Foolish lessons.
This year has brought the latest chapter in the
failing of the once proud and successful doyenne of
British fashion and retailing. Laura Ashley, known for
its flowery clothing and home furnishings, has
undergone various restructuring strategies and umpteen
management upheavals, all to no avail, and all of
which have decimated shareholder value and abused the
brand name.
Like-for-like sales have declined in the UK and in the
USA. In the crucial two months to mid-January the
total and like-for-like sales fell a whopping 13% in
the USA. Houston, err no, sorry, London, we have a
problem (a big problem)!..