Shares in N Brown Group PLC (LON:BWNG) plunged after the owner of Simply Be and Jacamo reported a lacklustre start to the new financial year.
The stock dropped 38.1p, or 12%, to 277.5p as the fashion retailer said trading since the end of 2015/16 had been subdued.
Bottom line profits fell 7.8% and the group kept its final dividend the same as last year at 8.56p. The full-year dividend was also unchanged on last year at 14.23p.
Statutory profit before tax dropped to £72.2mln from £78.3mln, which the company blamed on exceptional costs mainly in the first half.
Underlying pre-tax profit also declined 2% year-on-year to £84.5mln, which it said met expectations.
However, total group revenue increased 3.5% to £866.2mln and second half underlying pre-tax profit lifted 11% to £49.5mln.
The group, which caters for people with particular fashion needs, is aiming to move away from its traditional catalogue retailing strategy to an online model.
Chief executive Angela Spindler said: "It has been a very busy year for N Brown as we continue to transform the way we operate as a fashion retailer - from being mail-order led, to a business that puts digital first.
"We are mid-way through this journey and are delighted to see the benefits coming through, importantly achieving 11% profit growth in the second half of the year.
"Looking forward, whilst we face challenging market conditions for the fashion sector overall, and trading since the year end has been subdued, we remain confident in our ability to make further progress this year.”
Shore Capital, which acts as a broker to N Brown, lowered its full-year 2016/17 pre-tax profit estimate from £91mln to £85.2mln.
Analyst Clive Black said: "There is more to do and the current market weakness is a hindrance.
"However, we believe N Brown is right to be more confident about its future."