Monday, 3 September 2018

Footasylum shares plunge on profit warning

Shares in Footasylum plunged on Monday after the "athleisure" retailer warned on profits following difficult trading in July and August.

Despite reporting a 18.5% rise in sales to £98.6m for the six months to 25 August, Footasylum said sales since then had been "more challenging".

There was "no sign of a recovery" on the high street, the retailer said.

As a result, adjusted annual profits will be "significantly lower" than previous guidance".

Footasylum expected to post less than half the £12.5m it made in the last financial year, according to an unscheduled trading update.
Barry Bown, executive chairman, said: "These are undoubtedly challenging times in the retail industry and, in common with many other businesses, Footasylum's trading has continued to be impacted by weak consumer sentiment."

It also blamed "some unforeseen delays" in opening new stores and a hit to margins from more clearance activity.

Shares more than halved to 40p, leaving the company valued at about £42m.

BBC     News.

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