Dawson sees FY ahead of market forecasts

Date: Monday 01 Feb 2010

Dawson expects full year sales and profits to come in ahead of market forecasts after a strong final quarter at its UK and US Knitwear businesses more than offset continued weakness in its Home Furnishings business.

The UK Knitwear business benefited from the timing of high margin sales to couture customers which significantly improved margins in the final quarter, said Dawson. "This is likely to have some negative impact on the first quarter of 2010 with the sales mix impact reversing."

The US Knitwear business sustained sales and margins through the final quarter in spite of the fragile US economic environment, the group added. Sales of branded lines and overall margin levels were both stronger than expected.

In contrast the Private Label Home Furnishings business experienced poor margins throughout the year with the significant decline in Sterling compared with the US dollar impacting its cost of sales.

"While this improved somewhat in the second half of the year it is anticipated that the business will report a small loss overall," Dawson explained.

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