Laura Ashley posts another profit warning

SHARES in British interiors and womenswear firm Laura Ashley tumbled after it issued a third profit warning in 12 months.

The retailer, which is famous for its floral wallpaper and pastel-coloured furniture, said sales dropped almost 8pc in the six months to December 31.

Profits plummeted by 45pc to £4.3m, forcing it to downgrade expectations for the full year.

The share price fell 5.7pc, or 0.35p, to 5.75p yesterday, prompting analysts at Cantor Fitzgerald to lower its target price from 12p to 9p.

Khoo Kay Peng, chairman of Laura Ashley, blamed its falling profits on the lower value of sterling.

Boutique hotels in Hertfordshire and the Lake District proved popular and it is looking to expand the venture both in the UK and overseas.

Earlier this month Laura Ashley said it would close more than 120 stores in Japan, Taiwan and Hong Kong.

Khoo said he was confident of progress, with online sales up 5.1pc in the final six months of 2017.