ALEXON, the fashion retailer, yesterday said that its Dolcis footwear chain will show a profit this year for the first time in at least five years.

The turnaround is expected to contribute to a 24 per cent rise in Alexon’s full-year profits to more than £30 million.

The improvement in profits, however, will come in spite of a sharp fall in like-for-like sales growth in the run-up to Christmas. Comparable sales growth fell to 2 per cent in the six weeks to January 4, down from 15 per cent last year.

The performance was in line with analysts’ expectations. Robin Piggott, finance director, said the market for classic styles had been tough in the run-up to Christmas, but said Alexon had benefited from the weakness of competitors such as Windsmoor and Jaeger.

He said Style and Bay Trading, the brands aimed at younger shoppers, had struggled to compete with last year’s strong performance.

At the group’s more traditional fascias, which include Alexon, and Dolcis, underlying sales rose between 3 per cent and 4 per cent over Christmas, but were flat at the Style and Bay Trading chains.

He added that trading had been strong in the new year.

Alexon shares rose 4p, or 2 per cent, to 199p.

Alexon has struggled to revitalise Dolcis since it purchased the heavily loss-making chain three years ago. In the year to January 2002 Dolcis made a loss of £600,000.

Mr Piggott attributed the turnaround at the shoe chain to a broader product range and the conversion of poorly performing stores into other fascias owned by the group.

Fast Times

For live updates on this story today, excluding T-Mobile and Virgin mobile customers, type TIMESBIZNEWS ON and send to 80088.

For more details click here

Fast Times

For live updates on this story today, excluding T-Mobile and Virgin mobile customers, type TIMESBIZMKTS ON and send to 80088.

For more details click here