Iverson unveils revamp plan for Laura Ashley
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Your support makes all the difference.Laura Ashley will reduce its reliance on its trademark floral frocks and wallpaper as part of a dramatic revamp to restore its fortunes by the new American chief executive Ann Iverson.
Speaking for the first time yesterday Ms Iverson said Laura Ashley was a "brilliant brand" that had shown great resilience and still had great potential: "It's English, it's feminine. It's still independent. But it doesn't have to be floral."
She said the appeal of the brand would be broadened and the product range modernised. Previous efforts at re-structuring had focused only on reducing costs but not the key issues of design, buying, or how the business was going to grow, she said. "It's about taking a good brand and getting it right."
Julie Ramshaw, retail analyst at Morgan Stanley said: "She is not going to throw away the floral smocks. That would be foolhardy. But she will exploit the non-traditional aspects of the brand."
Ms Iverson sketched a three- year plan to reverse the fortunes of the group which reported a pounds 30m loss in January, hit by high overheads, a complicated structure and problems in its American stores. The company has already consolidated its design, buying and merchandising operations in the UK and plans to reduce the number of product lines by 25 per cent.
Ms Iverson said many of the 430 shops were too small to stock the depth of range the group should offer. So there will be a shift to larger outlets. The first of these will open at Brent Cross shopping centre, north London, in the next few weeks.
Ms Iverson stressed that she sees Laura Ashley as a brand with international appeal and sees scope for further development in the US: "We are only in 150 of the top malls. But there are 500 we could be in."
She refused to be drawn on speculation that the manufacturing plant might be sold, but said product design and quality would be improved. A new head of design and buying was being recruited. She said that the company ought to be in a position to deliver double-digit margins within three years. If she fulfils the targets in her contract Ms Iverson could earn pounds 3.4m over the same period.
The plans were greeted with a favourable reaction in the City and the shares rose 5p to 109p. Morgan Stanley's Ms Ramshaw said: "She has grabbed the business by the scruff of the neck which is what this company has needed for so long."
Pre-tax profits were unchanged at pounds 3m for the six months to July. Like- for-like sales increased by 12 per cent though margins were eroded by mark-downs. Group sales rose from pounds 148m to pounds 164m.
Investment column, page 22
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