Womenswear group Alexon issued a profit warning before Christmas after its three peak weeks were wiped out by icy weather.

House broker Investec said the “unprecedented” weather conditions had led to its forecast that £1.5m would be wiped from Alexon’s profit before tax. Like-for-likes at the group, owner of chains including Ann Harvey and Kaliko, plummeted 19.9% in the three weeks to December 18, bringing the year to date decline to 4.7%. The weather also meant that in each of the three weeks between 40 and 60 of the group’s stores were closed.

Seymour Pierce analyst Kate Calvert said the profit warning was not a surprise because Alexon’s customer base is skewed towards older shoppers likely to have stayed at home during the bad weather.

Alexon may suffer a technical breach of its EBITDAR covenant but said its bank had been “constructive and supportive” following the trading difficulties.

Topics