UPDATE 1-UK retailer Alexon sees sales fall sharply

* Like-for-like sales down 10.5 pct in 17 weeks to June 13

* Margins saw "a small negative impact"

* Expects "intensely competitive" environment to continue

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LONDON, June 17 (Reuters) - British fashion retailer Alexon Group Plc (AXN.L) posted a further fall in sales and margins in its latest trading period, blaming poor consumer confidence.

Alexon, which trades as Eastex, Dash, Minuet, Ann Harvey, Kaliko and Alex & Co, said on Wednesday like-for-like sales fell 10.5 percent in the 17 weeks to June 13, while margins saw "a small negative impact" as it cut prices to shift stock.

Alexon expected an "intensely competitive" retail environment to continue for the forseeable future. "Trading performance and margins are likely to be impacted in the short term, particularly as Summer 2009 sale dates are brought forward in line with our key competitors," the company said.

Alexon, which put its Bay Trading unit into administration in April, said it continued to operate comfortably within its banking facilities. [ID:nl0176248]

Its shares closed Tuesday at 57 pence, valuing the business at 26 million pounds ($43 million). (Reporting by James Davey; Editing by Dan Lalor) ($1 = 0.6084 pound)