Walker Greenbank PLC (LON:WGB) shares plunged as the luxury interior furnishings company issued a profit warning after UK brand sales weakened more than expected.
In its interim results last month, the wallpaper maker had said that order intake was growing ahead of last year and was “on an improving trend” in the run-up to its key autumn selling period.
READ: Luxury interiors proving a harder sell in the UK for Walker Greenbank
But since that announcement, order intake has not been sustained, with brand sales in the UK, excluding Clarke & Clarke, having “weakened significantly” against management expectations.
Walker now expects full-year profits to be 10% lower than previously forecast.
“Whilst the UK remains Walker Greenbank's largest market, the board is focused on driving the company's international business where brand sales are ahead of the same period last year,” it said in its trading update released on Wednesday.
The company said licensing income continues to “grow strongly” and expects it to rise 15% on a like-for-like basis for the year.
Shares were down 25.84% to 156.11p in morning trading.