However, chairman David Brock insisted that 'quick and decisive action to implement a business reorganisation plan' should enable the business to trade through the downturn.
The retailer posted a full-year pre-tax loss of£460,000, compared with a profit last time of£85,000. Turnover slid 6.1 per cent to£25.9 million and composite gross margins were down from 41.6 per cent to 40.5 per cent.
Retail sales in the period slumped by 9.7 per cent - and 6.5 per cent like-for-like - to£13.9 million. Trading since the July 30 year-end has continued to be difficult, but exact figures were not given.
Brock said it was 'very disappointing to report on a loss-making year', but said were reasons for optimism. 'Our core product offer, focusing on Elle's heritage as a stylish, casual brand, continues to have broad market appeal and a well-established distribution network,' he asserted.
'Our improving strength in design and sourcing will enable us to further differentiate our offer, which we believe is key to the continued appeal of the Elle brand in a very competitive UK clothing market.'
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