Etam move upmarket backfires
Saturday 04 February 1995
The company warned yesterday that profits for the year to 28 January would fall to £11m-£12m, down from £14m in 1993 and short of the £16m expected by the market.
Following a strong first half and an increased interim dividend in October, the company would recommend a final dividend of 5.75p, said Keith Miles, finance director.
The set-back comes after the 226-store chain attempted to reposition itself in the market. Last year the company signalled its intention to abandon its "Romford Girl" image and move from the commodity high street market characterised by Dorothy Perkins to a more prestigious, niche position, rivalling Next and Marks and Spencer. It said it would invest some of its £13m cash in revamping stores.
Yesterday's statement confirmed fears first voiced by the company in October that demand for the new merchandise was proving patchy. The company's determination to sell stock at full prices had hit sales and, therefore, profits.
The situation was exacerbated by the disruption caused by the renovation of 60 of the 226 stores and by the warm autumnal weather. The company predicted sales in 1995 would recover strongly.
The market received the news badly, with shares falling yesterday from 201p to 183p. However, analysts were not overly perturbed, believing the company's strong balance sheet and detailed stock control would see it through.
- 1 Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 5 Israel's propaganda machine is finally starting to misfire
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...
£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...