Ladies Fashion Group Alexon Turnaround Plans Go Awry Amidst Tough Trading
July 8, 2011 | In: Information
The ladies fashion group Alexon has hit rough weather in its plans for a turnaround. Share prices of the ladies fashion chain have taken a beating, because of tough market conditions and reduction in revenues, as a result of which plans of investment and recovery have gone awry.
Large stores of the ladies fashion group contribute in a big way to the company's sales, as Alexon operates out of concessions in these stores. However sales for the 5 month ending June have been disappointing and up by only 0.9% compared to its corresponding period last year. As a result margins have declined, resulting in declining promotional activities and sales.
Brands of the ladies fashion group that have been doing well are, Kaliko, Alexon and Eastex. Dash brand, was giving negative returns but was being offset, by the returns, from the other three ladies fashion brands, of the group.
The group is now on the lookout for a capital structure that is more appropriate, reducing its debts and thereby enabling the group to concentrate on efforts for a turnaround.