Portmeirion (AIM:PMP) slumped on Friday as the crockery supplier warned profits will be way below expectations in the year ending December due to weak sales in Korea and the US.
Annual revenues will be around £90 million, it said, with sales in the second half down by 7% and the key Christmas period affected by supply chain disruption from Asia.
AIM-listed Portmeirion (AIM:PMP) added that the fourth quarter is always a key trading period and the shipping problems have delayed deliveries in time for key holiday sales periods.
Overall, sales and replenishment across October and November 2024 were below expectations with the US down 6% and a 13% drop in Korea.
Better margins will help offset some of this, Portmeirion (AIM:PMP) added, but it will take time to recover especially in Korea where it is working through high stock levels.
Mike Raybould, chief executive, added: "Consumer confidence and spending levels remain challenging across our key markets of the US, Asia and UK.
"In South Korea, we have made progress in reducing high stock levels, but weak consumer and retailer confidence continue to impact trading in this region.
“We took action at the start of the year to reduce our overhead base by circa £4 million (circa 10%) which will give us a leaner cost base from which to grow profits as consumer markets improve.
“The impact of lower sales in South Korea and the resulting lower utilisation of our UK tableware factory has had an adverse impact on 2024 profitability, excluding which, overall group net profitability would be significantly up on 2023.”
Bright spots were the Wax Lyrical arm and sales of Spode, Raybould added.
Shares fell 35p to 170p.