Homestyle axes dividend after letdown by Harveys
Homestyle axed its interim dividend yesterday after a terrible summer for its Harveys furniture arm dragged it sharply into the red.
The struggling retailer racked up interim losses of £11m, confounding analysts' expectations of profits of £1.4m. Its shares plunged 8 per cent to 124p.
Gillian Hilditch, a retail analyst at Arbuthnot, said: "As always it was an extremely unimpressive performance from the company."
Despite scrapping plans for an interim payout, the company said it expected to pay a final dividend. But first it must emerge unscathed from its most important trading period at a time when conditions on the high street are worsening.
Richard Ratner, at Seymour Pierce, warned that the company would have "severe problems" if, as feared, the "all-important" January sale is unsuccessful.
Homestyle said like-for-like sales at Harveys, which also sells kitchens, slumped 7 per cent in the six months to 1 November. Excluding the Kitchen Studio business, which it is considering selling, the division's losses spiralled to £6m.
Although it said revamping the stores' product range had helped like-for-like sales to rebound, rising 6 per cent in the past six weeks, analysts noted this was against very weak comparatives.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies