Second profit warning batters Laura Ashley

Shares in female fashion retailer Laura Ashley came unstitched yesterday, shedding 18 per cent on the group’s second profit warning in six months.

The group said in a two-paragraph stock exchange statement that trading has “continued to be demanding”. Laura Ashley,whichalsosellshomewares, added: “The board of the company therefore expect net pre-tax profits for the year ended 30 June 2017 will now be materially below market expectations.”

In addition, the company flagged up an exceptional £2.8m impairment charge due to the revaluation of a freehold property it owns.

The stock closed down 2p at 9p. Laura Ashley’s shares have lost 60 per cent of their value in the past 12 months when they reached 23p.

The group did not disclose the location of the revaluated property, but as of the end of 2016, its portfolio consisted of 190 stores across the UK, including 25 concessions.