It appears, the once 'flying' Flying Flowers, has one engine on fire and passengers should expect some turbulence and maybe a bumpy landing.
Last week, the Jersey based Flying Brands, disappointed the City with some pretty dire numbers and probably the clearest indication yet that luxury goods are taking a hammering.
Flying Brands, which owns Flying Flowers, Gardening Direct, Garden Bird supplies and Sarah Raven’s Kitchen & Garden, said in a statement released to the London Stock Exchange that is has experienced a very difficult 2007 due to the cuts in retail spending. Business was poor in all divisions resulting in a 32% cut in the half year dividend.
Chairman Tim Trotter said in his statement
"2007 has been a very difficult year for the Group, particularly the second half, and this is reflected in the results.
Not only did we have to contend with deteriorating general retail market conditions but we were also beset with a series of one off issues and a general decline in the trading performance in the second half of the year on all our main trading divisions.
However, we are taking steps to strengthen our core operations in gardening and gifts and the success that we achieved in launching the Greetings Direct brand in Australia indicates good profit potential from international markets going forward."
The Flying Brands news comes hot on the heals of Homebase who have announced a 5% drop in sales hinting that there is more of the same to come.
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