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”.
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.”