Card Factory (LSE:CARD) shares plummeted 23% to 73.86p, their lowest in three years, after warning that profits are likely to be lower than last year due to pressures on UK consumers affecting shopping behaviour in the past few weeks.
The company said these conditions have led to soft high street footfall and that UK store sales are running below earlier expectations as it enters its most important trading period.
Assuming current trends persist through the final seven weeks of the year, the group now expects adjusted profit before tax of between £55 million and £60 million, which would be down 6-17% from the £66 million reported last year.
At its interim results in September, the FTSE 250-listed group had reported adjusted profits down 9% to £13.2 million and said it expected "mid-to-high single-digit percentage growth" for the full year.
Card Factory said progress continues on its long-term strategy, including its 'Simplify and Scale' productivity and efficiency programme, which is helping to offset ongoing inflation in the retail sector.
Performance in the Republic of Ireland and North America remains in line with expectations, and the integration of Funky Pigeon is on track.
The board said it remains confident in the group’s long-term strategy. The current share buyback will continue and directors expect to declare a progressive full-year dividend.
** UPDATE: Adds share price **