Luxury goods retailer Laura Ashley has reported a 10 percent fall during its first half of the year sales. The retailer, known for its floral designs, “country” fabrics and simple romantic dresses, said the sales at the stores were below management expectations. The company says it is trying to improve the products quality and to make them more fashionable. Laura Ashley is currently trying to expand its home furnishing range to reduce its dependency on clothing. During the first half of the year, says Laura Ashley, the sales of home products have increased 3% and now make up 80% of the brands total revenue.

“Despite the positive reception that the new ranges have received from the fashion press and our franchise partners, sales have fallen below our expectations,” says the company.

Laura Ashley has closed nine stores in the course of the past six months, which led to a 3% net fall in overall selling space. Eight of the remaining stores are slated to be converted into the standalone furniture stores during the second half of the year.

"We expect that our continued focus on margin improvement and cost saving will mitigate the impact of lower sales, and that as a result our profits for the full year will be within the range of brokers' forecasts," said the company statement.