Flying Brands said that group trading has also been hit by returns from its Greetings Direct business. The deterioration in performance has been felt across both its UK and Australian operations. However, the retailer has committed to opening its Greetings Direct business in the US next month.
Trading at Flying Brands’ other brands, including Flying Flowers and Gardening Direct, is marginally below expectations. The internal profit expectations for these brands have been reduced to£200,000 million for this year.
Last month, the Jersey-based group announced a 31 per cent drop in pre-tax profits to£3.6 million for the year to December 28, 2007. Like-for-like sales tumbled 13 per cent.