Alexon warns on lower profits

Alexon, the struggling fashion group, has warned its profits will be lower for second time in just over a month – despite its sales recovering strongly over recent weeks.

The City had expected profits of £1.9m, but Alexon, which owns the Ann Harvey and Eastex brands, now expects between £0.7m and £1m for the year to 29 January after its margins fell.

However, Alexon's sales jumped by 13.3 per cent over the five weeks to 22 January. It has also resolved a potential breach of a banking covenant.