Laura Ashley is to launch in China after years of attempting to target the market.
The British brand, best known for its floral frocks, is to open a website via Chinese online operator Tmall, owned by Alibaba, and will also begin selling clothing in the first Chinese House of Fraser store, which will open in Nanjing this autumn.
Seán Anglim, Laura Ashley’s finance director, said its long-term aim was to find a Chinese franchise partner.
“China is not easy as evidenced by how many have got in and how many have come out. It is all about finding the right partner and doing it at the right time,” he said.
Laura Ashley already has franchise partners in 30 countries and sells online in six. Anglim said the company wanted to expand that further with new websites planned in Hungary and the Czech Republic in coming months.
The move into China was revealed as Laura Ashley, which is listed on the London Stock Exchange but controlled by Malaysia’s MUI Group, reported a £25.8m profit for the 74 weeks to 30 June.
Comparing the performance to the previous year is not straightforward given the longer time period, which came as the company moved its year end from January to June, but pro-rata profits before exceptional items fell 19%.
Group sales rose to £400.9m, including like-for-like retail growth of 4.1%, adjusted to allow for the differing accounting periods.
The company chairman, Dr Khoo Kay Peng, said the results had been boosted by a 15.7% like-for-like rise in online sales. “In a time of uncertainty for retail and the global economy at large, I am optimistic and confident that Laura Ashley will remain a business with solid foundations to withstand challenges as they arise,” he said.
Like-for-like UK retail sales rose nearly 16% despite the company reducing its store count by 13 to 192.
Anglim said Laura Ashley was likely to close further stores but the size of the chain would not change dramatically. “A store presence is critical to us. We are not a brand that can survive online only.”
