The recent spate of sunny weather has brought not just an uplift in spring 10 sales but also a renewed sense of optimism. Results from some of the leading fashion firms seem to suggest we are over the worst.
Sir Terry Leahy, who presides over Tesco, which hit £1bn of clothing sales for the first time in the year to February 27, was vocal in his belief that the recovery has taken hold, a sentiment echoed by value chain Primark, which recorded a 19% hike in sales over the six months to the same date. Asos too has seen UK retail sales rise 25%, with chief executive Nick Robertson saying he was approaching this year with “considerably more confidence”.
Meanwhile, outgoing Clarks chief executive Peter Bolliger told shareholders he was heartened by the improvements to trading stability while at the other end of the market, Burberry said it would post record profits and that the general election would not affect its forecasting. It’s worth noting that less than 7% of its sales come via the UK though.
Nevertheless, the threat of a hung parliament - a potential disaster for sustained economic recovery - remains.
Nearly a million 16 to 24-year-olds are now out of work, perhaps explaining why young fashion is having a tough season.
Not only that, but an erupting volcano in Iceland (of the geological rather than the financial kind) has halted air freight. So far disruption to supply chains has been minimal but an extended grounding of flights could present all kinds of challenges not just from a stock delivery point of view, but also in terms of samples reaching the UK in time for the start of the spring 11 selling season.
Still, the sky looks blue for most today.
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