Alexon sales slump in big freeze

The owner of brands including Ann Harvey, Dash and Kaliko said the winter freeze saw like-for-like sales plummet 19.9 per cent in the three weeks to December 18.

Luton-based Alexon, which also owns Minuet, added that the weather was having a disproportionate effect on the group as it largely serves the older market.

Between 40 and 60 of its outlets - including concessions in retail stores - closed due to the snow in each of the last three weeks, although online sales jumped 129 per cent in the period to mitigate some of the high street pressure.

Shares in the retail sector have fallen sharply in recent days amid fears over the loss of sales in one of the most important trading weeks of the year.

In Alexon's case, the recent decline left sales so far this year down 4.7 per cent and will impact profits in the year to January 29 by up to 1.5m. Investec Securities revised its forecast for the year to 1.3m from 2.8m.

Alexon added it was in talks with its lender as the performance threatened a potential technical breach of one of its banking covenants.