Efforts by a new management team to revive fashion chain Alexon have been boosted after the group revealed an improvement in December trading yesterday.
Alexon surprised investors by upgrading profit forecasts and said there had been a “pleasing initial reaction” to spring ranges for two of its key brands, Bay Trading and Ann Harvey.
The business is now led by former Peacocks buying and merchandising director Jane McNally following her appointment as chief executive in April.
She has drafted in Jane Eskriett – previously womenswear director at New Look and Primark – to carve out a new niche for the brands.
The firm currently has more than 1,000 outlets in the UK and Europe, many of which are concessions within department stores.
While overall like-for-like sales for the 23 weeks to January 3 were down 10.5% on a year earlier, Alexon said December trading for the group showed an improvement on the previous nine weeks.
It now expects operating profits for the year to January 31 to be “slightly higher” than management’s forecasts at the end of November.
Ms McNally has already taken action to reduce levels of old stock, while there has been a positive reaction to new products at Bay Trading and Ann Harvey.
Alexon said: “These are the brands where there has been an opportunity for the new management team to influence the product direction due to relatively shorter lead times.
“This is encouraging for the 2009 outlook, which we believe will remain challenging in the wider economic terms.”
