Laura Ashley warns on profits again after 'very demanding' Q3

25th Apr 2019 11:14

(Sharecast News) - Laura Ashley shares slid on Thursday after the retailer warned that full-year results would be "significantly" below market expectations.In a very brief update, the company said trading conditions have been "very demanding" over the third quarter."The board of the company have reviewed the revised full year forecasts for the year ending 30 June 2019 and expect the results to be significantly below market expectations," it said.The group had already warned on profits back in February as it posted an interim pre-tax loss of £1.5m versus a profit of £4.3m in the first half of 2017 and said total retail sales declined 8.7% to £122.9m. The revenue drop was attributed to the closure of four stores during the period, a like-for-like retail sales decline of 4.2% and the termination of the master license agreement with its previous Japanese partner.Laura Ashley said margins had been affected by a weakening of the pound against the dollar, as well as an increase in domestic costs.Chairman Andrew Khoo said at the time: "Trading conditions have been difficult during the first six months of the year to 31 December 2018. Given the continued market turbulence and having reviewed the revised management forecast for the second half year, the board now holds the view that the performance for the entire year will fall short of market expectations."At 1130 BST, the shares were down 7.9% at 2.58p.