Oasis Stores unveils 42 per cent slump in profits

Click to follow
The Independent Online

Oasis Stores, the women's fashion retailer, yesterday unveiled a 42 per cent slump in first-half profits and gave a downbeat assessment of its prospects for the rest of the year.

Oasis Stores, the women's fashion retailer, yesterday unveiled a 42 per cent slump in first-half profits and gave a downbeat assessment of its prospects for the rest of the year.

The shares fell 12.5p to an all-time low of 63.5p. Analysts commented that the group "might be better suited to the private arena". Oasis reported pre-tax profit of £2.9m for the 26 weeks to 29 July, compared with £5m in the period the previous year. Like-for-like retail sales, stripping out new store openings, were flat, or down 2 per cent after currency adjustments.

Derek Lovelock, Oasis chief executive, also blamed the recent petrol crisis for a "freak" week during which like-for-like sales were 20 per cent lower. The group warned that profits for the second half were unlikely to show much improvement on the previous year.

Matthew McEachran, an analyst at Investec Henderson Crosthwaite, said: "It's been a struggle for Oasis over the past couple of years... Derek Lovelock has got quite a big task to get the company back on track, but it is possible." An Oasis spokesman said taking the group private was "not on the agenda at the moment".

Comments