Sanderson Design Group PLC (AIM:SDG) fell almost 20% as it warned the market for top-end wallpaper and furnishings had turned down even more following a warning in April.
For the first 22 weeks of the current financial year, total brand product sales were down 9%, the group said, compared with the same period last year with the UK seeing a 14% fall.
Added to inflationary pressures still working their way through its business, profitability is below previous expectations and for the year to end January will be in the region of £8 million.
North America and Licensing have both continued to trade in line with board expectations.
A programme of strategic initiatives to improve the UK’s performance is underway, including more cost cutting, the statement added.
Shares dropped 20p to 82.5p.