Laura Ashley like-for-likes shrink by 9%

Laura Ashley, the fashion and homeware retailer best-known for its floral prints, has seen sales slump as it heads into the vital Christmas trading period.

Like-for-like sales were down 9.9% in the 20 weeks to 13 December. The company blamed "tough trading conditions" and the effect of new store openings on existing shops. Total sales increased by 9.7%, reflecting the new stores.

Laura Ashley said the outlook is "extremely challenging". Last month, it lost finance director David Cook, who had held the job for nine years. No reason was given for his departure.

The retailer generates almost 80% of its revenue from the UK, where consumer confidence is low and shoppers have started to trade down.

Most of Laura Ashley's sales come from home furnishing and decorating products, both of which have been hit by the softening housing market.