Overall, the group's operating profit fell from£29.4 million to£19.7 million for the year ending January 28. Like-for-like sales were down 1.4 per cent.
Like-for-like sales at Dolcis were down 6 per cent and the shoe chain recorded an operating loss of£0.7 million against a profit of£3.6 million for the previous year. In response to the disappointing results, Dolcis has strengthened its buying team in a bid to improve the fashionability of its ranges.
Menswear also performed badly. The division, including high street chain Envy and in-house brands Tom Wolfe and Parkes, recorded losses of£2.6 million and like-for-like sales down 9 per cent. The results were blamed on a difficult year in the UK menswear market. The group also admitted that 'costly strategic errors with the Envy product offer' exacerbated the weak results. In an effort to turn things around, the group has begun 'a fundamental rethink of product strategy, involving a greater emphasis on key third-party brands and a strengthening of the buying team'.
In contrast, Bay Trading had a good year, improving greatly on its figures for 2004. Like-for-like sales increased by 5 per cent and operating profit was£2.5 million compared to a small loss last year.
Like-for-like sales at the Alexon Brands division were level with last year. Eastex and Alex & Co fared the best, while figures for Ann Harvey were 'disappointing'. The launch of middle-market brand Mandolin underperformed the group's expectations significantly.
Chief executive John Osborn said: 'As we are expecting another tough year, our emphasis will continue to be on product innovation and cost control. We are confident that the steps already taken in Dolcis and Menswear will improve the performance of both divisions and that the Bay Trading and Alexon brands can make further progress.'
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