UPDATE 1-Alexon 16-wk LFL dips 14 pct; sees tough pricing

* Sees margins likely to be hit by price competitiveness

* Says financial position secure (Adds details)

Nov 26 (Reuters) - British fashion retailer Alexon Group Plc (AXN.L) posted a 14 percent drop in like-for-like sales for 16 weeks to Nov. 21, and said margins may be hit by the price competitive environment affecting Christmas period and January.

However, the company said its Eastex and Dash brands continued to trade strongly, Minuet and Kaliko brands showed the most marked upturn since the end of the summer sale period, and its Ann Harvey brand had gradually improved full price performance for the year-to-date.

Alexon said its financial position was secure and it was confident that its strategy to return its brands to profitability was progressing well.

Alexon shares closed at 39.75 pence on Wednesday on the London Stock Exchange. (Reporting by Kumar Alagappan in Bangalore; Editing by Kavita Chandran) ((kumar.alagappan@thomsonreuters.com; +91 80 4135 5800; Reuters Messaging: kumar.alagappan@thomsonreuters.com))