In its interim results and trading update, Monsoon unveiled a 5 per cent rise in like-for-like sales in the six weeks to January 7 and a 4 per cent like-for-like rise in the six months to November 26.
Monsoon chairman Paul Simon blamed lack of consumer confidence on the high street for a fall in pre-Christmas sales.
Simon said he had underestimated 'the very difficult trading conditions that ensued through the autumn season, when we experienced a decline in like-for-like sales until Christmas. Since then, like-for-like sales have been positive but these have been based on significantly higher-than-planned stock levels as we entered the winter Sale.'
Evolution analyst Nick Bubb said that Monsoon's results show that the business may have over-expanded, taking on huge amounts of new space just as its fashion cycle was peaking.
He said: 'The statement talks about the lack of consumer confidence on the high street, but Monsoon also did very well last summer on the back of the boho look, which is now very last year. Total UK sales grew by 29 per cent in the first half, but like-for-like sales were up only 2 per cent. Although Christmas sales were up 2 per cent to 3 per cent like for like, excluding overseas, that was driven by heavy stock markdowns.'
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