Laura Ashley has issued its second profit warning in the space of six months amid “demanding” trading conditions.

The homewares and fashion business said pre-tax profits for the year ending June 30 “will now be materially below market expectations”.

The retailer previously warned in February that earnings would come in below forecasts. 

Laura Ashley said its full-year results, due to be revealed on August 23, would include an exceptional £2.8m impairment charge due to the revaluation of a freehold property owned by the group.

The company suffered a 29% slide in pre-tax profit to £7.8m in the 26 weeks to December 31.

Like-for-like sales during the same period tumbled 3.5%, while total sales fell 2.5% to £146m.

Laura Ashley’s chairman Tan Sri Khoo Kay Peng said at the time: “Trading conditions have been demanding during the first six months of the year ending 30 June 2017.

“The board have reviewed the first-half results and forecasts for the remainder of the year and, given the continued market challenges, feels that net pre-tax profit for the year will fall below market expectations.”