Preliminary Announcement

1
Preliminary Announcement Year to January 2002
2
Group Strategy Aims for 2001/2

• Strengthen product offer
• Country Casuals Petite
• Austin Reed reed
• Extend UK distribution
• additional concessions
• store upgrade programme
• Control retail fundamentals
• margin improvement
• stock management and cost control
• Maintain licensing developments
• renewals
• new licences

3

• TRADING RESULTS 2001/2

4
Results Group

• Excellent profit performance
• PBT up 21 and EPS up 19
• Positive cash flows
• debt reduced to 6.3m
• Strengthened balance sheet
• NAV now 166p per share

5
Results Country Casuals

• Excellent sales growth
• 14 increase (11 LFL)
• Sales of Main Range products increased
• Petite launch was a great success
• distribution increased from 47 to 58 outlets
• Margins improved
• Increased distribution
• concessions opened 13 and closed 5
• stores opened 2 and closed 1
• completed store upgrade programme

6
Results Austin Reed

• Total sales were broadly level (-1)
• Menswear sales increased
• significant growth in reed
• formal wear started to recover
• Womenswear sales were down
• ranges rebalanced
• Improved margins
• Supply chain management
• Increased distribution
• concessions opened 14 and closed 1
• stores opened 1 and closed 3

7
Results Licensing

• Sales increased by 8
• volumes increased
• Existing licences renewed
• New licences negotiated
• fragrance
• US sportswear

8
Results Operations

• Started a major project to extend warehouse and
  distribution facilities
• Continued to improve information systems
• planning, merchandising and stock control
• customer management

9

• FINANCIAL RESULTS 2001/2

10
Summary Balance Sheets
Jan-02 m
Jan-01 m
39.2
42.9
Fixed assets
16.2
18.0
Stocks
17.8
19.6
Debtors
(15.6)
(20.7)
Creditors
(1.4)
(1.4)
Deferred tax
(12.1)
(6.3)
Net debt
44.1
52.1
Shareholders funds
12
27
Gearing
11
Summary Profit Statement
Jan-02 Total m
Jan-01 Total m
Continuing Operations
109.7
116.2
Turnover
59.1
63.7
Gross profit
(50.8)
(54.5)
Operating expenses
8.3
9.2
Operating profit
(1.5)
(1.0)
Interest
6.8
8.2
Profit before tax
12
Segment Analysis
Jan-02 m
Jan-01 m
Continuing Operations
107.6
114.0
Turnover
Retail
2.1
2.2
Licensing
109.7
116.2
7.4
8.3
PBT
Retail
1.9
2.1
Licensing
(2.5)
(2.2)
Common Costs
6.8
8.2
Profit before exceptionals
13
GROWTH STRATEGY 2002/3
14
Sales Profit Performance
Continuing Operations

20 15 10 5 0 -5
2000 2001 2002
Retail Gross Margins Improved by 4 points
15
Development of Core Business

• Country Casuals main range
• continue product development process
• strengthen leadership in modern classic sector
• open 8 new concessions and 3 stores
• Austin Reed main ranges
• maintain development of mens formal wear
• reposition womenswear to tailoring/smart career
  wear
• open 12 new concessions
• maintain margin improvement

16
Strengthen Growth Sectors

• Expand Country Casuals Petite range
• 22 further outlets including 12 solus concessions
• extend product range
• Maintain growth of reed
• product range development
• launch of golf reed, ski reed
• Expand accessories
• Further develop new licences
• fragrance mens womens
• sportswear USA

17
Regent Street Project on Schedule
Pre-enabling Works (South core) Enabling
Works (South core) Main Works Upper Floor
Offices Flagship Store Relaunch
2002
2003
18
Regent Street Impact on Performance

• Projected sales reduction of 20 during
  development period
• Sales increase of 30 in 2nd half of 2003/4 and
  40 thereafter
• Office rental income from 1st half of 2004/5

19
Current Trading

• Sales up 13 in first 8 weeks
• 10 like for like growth
• Growth across all business sectors
• Margin improvement on plan