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.
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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.