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 Games of Thrones actor Lena Headey makes emotional promise to her unborn daughter
- 2 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 Picture of couple posing with beached dolphin 'that later died' causes outrage
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
Female Muay Thai champion hustles coaches to give them a beating
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...