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.
As Voltaire once said, “Ice cream is exquisite. What a pity it isn’t illegal”
- 1 Mother fed her daughter tapeworms to make her skinny for beauty pageant
- 2 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 3 Crystal Palace next manager latest: Palace consider Ally McCoist - EXCLUSIVE
- 4 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 5 Tim Sherwood column: 'It started as a three-horse race but turned into the Grand National'
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£20000 - £27000 per annum: Harrington Starr: Service Desk Analyst- (Desktop Su...
£25000 - £35000 per annum: Harrington Starr: Service Desk Analyst - (Active Di...
£30000 - £50000 per annum: Harrington Starr: Junior Quant Analyst - C++, Boost...
£30000 - £50000 per annum: Harrington Starr: Junior Quant Analyst (Machine Lea...