Shares in TheWorks.co.uk PLC (LSE:WRKS) fell 7% on Monday as worries over a tough consumer backdrop overshadowed signs of progress at the discount books and crafts chain.
The company, which promotes itself as offering affordable, screen-free activities, said like-for-like sales since the start of the financial year were ahead of the market. It also pointed to strategic advances, including a mezzanine expansion at its distribution centre and the near-completion of a switch to a new online fulfilment provider ahead of the Christmas peak.
Even so, management acknowledged that trading conditions remain difficult as household budgets stay under pressure.
While cost savings and margin gains are expected to support profits, investors appeared unconvinced.
The board reaffirmed guidance for pre-IFRS 16 adjusted earnings of £11 million for the year, in line with forecasts.
The shares fell 3.88p to 49.12p.