Alexon reported a 5.4% drop in like-for-like sales in the 19 weeks to June 12 - an acceleration on the first 11 weeks when sales fell 4%.

The womenswear retailer said many of its brands performed well but blamed a poor performance from Ann Harvey on delivery delays because of the volcanic ash cloud.

Eastex struggled during the election as older consumers cut back on spending. Alex & Co continued to perform most poorly but is expected to improve later in the year following a rebrand to Alexon.

Ambrian analyst Phil Dorgan said there is opportunity in Alexon as it continues to invest in turnaround. He believed Alexon’s margins could be “improved quickly by installing margin management systems and by tougher negotiation with suppliers”.

Natalia Marisova of house broker Investec said Alexon “remains substantially undervalued”. Both analysts maintained their buy stance.

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