Portmeirion (AIM:PMP), the homeware retailer, has fallen close to 14% on Wednesday after warning of a weaker flow of orders in the first half of the 2024 financial year.
In a full-year trading update, the company said it was expecting year-on-year sales growth and “healthy operating margin improvement” but warned the upcoming year would be “challenging” due to weakness in the US and South Korean markets.
“In addition, we expect to continue to incur higher interest costs during the year given current rates,” the London-listed group added.
Revenue during the 2023 financial year is expected to come in at over £102 million, which is lower than 2022’s record results, but slightly ahead of market consensus.
In South Korea and the US, sales fell on an annual basis due to weaker consumer spending and retailers destocking the crockery maker’s products.
Spode, one of the group’s tableware brands, saw its sales grow thanks to its popular Christmas tree ranges, extra store space and extensions to its ranges.
Overall, its ceramic sales in the UK failed to grow on 2022’s performance, despite experiencing a 9% leap in the two months of festive trading to 31 December.
Mike Raybould, chief executive, said: "Although consumer market conditions have been significantly more challenging in 2023, we are encouraged by our strong Christmas trading performance in the UK and US, the continued growth in our ROW markets and the sales rebound and new business wins in our home fragrance division.”
Shares in Portmeirion (AIM:PMP) are down around 17% in 2024 and are trading at a little over 240p.