Land of Leather sales drop

Pre-tax profit for the 26 weeks ended 27 January 2008 dropped to £5.5m from £5.8m a year earlier and from £8.4m in 2006. Revenue rose 15 per cent to £133.3m, but total sales order intake was down 4 per cent and like for like sales by 16 cent. Roger Matthews, Chairman, said 'Like other participants in the sector, we have been impacted by the significant downturn in demand for big ticket household goods. However, we are well placed to trade through these challenging times given our strong balance sheet, net cash position and differentiated retail proposition. As a result, we are strongly positioned to increase profits quickly when consumer confidence returns.