Although like-for-likes fell 7.3 per cent in the 10 weeks to December 9, executive chairman David Adams told Retail Week that comparable store sales advanced between 1 and 2 per cent in the past three weeks.
He anticipated a refinancing of the business by the middle of next year, ahead of the expiry of existing arrangements at the end of 2008.
Jessops made a loss of£7.5 million in the year to September 30, compared with a profit of£13.2 million the previous year. Sales were£325.5 million – down from£350 million – and like-for-likes slid 8.7 per cent for the same period. In the 10 weeks to December 9, sales sank 26.6 per cent compared with last year.
The retailer said that comparisons were affected by aggressive promotions last year, after Jessops’ margins were hit by its internet price-matching promise.
The retailer intends to reposition itself as an upmarket specialist, having closed 81 stores this year and disposed of£16.8 million of clearance stock.
Adams said: “We have put the business in a stronger position for the future. The debt of the business was tied up with excess stock. Despite challenging market conditions, we have delivered on our initial goals with the restructuring programme and have set out the strategic framework for the business.”
House broker ABN Amro said: “Although there remains a lot of work for Jessops ahead, at this stage the business is on track.”
Panmure Gordon analyst Christian Koefoed-Nielsen said: “Jessops is a high-risk investment, but we remain convinced that the business has a sustainable future. The fact that phase one of the restructuring plan is on track gives us more confidence that this business can be turned round.”
The retailer is expected to appoint a new chief executive and financial director early next year.
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