N Brown PLC (LON:BWNG) tanked on Thursday morning after the retailer issued a double profit warning for this year and next.
The plus-size clothing seller posted 5% lower revenues in the 18 weeks to 4 January, with positive performance in the online section offset by low in-store and financial services sales.
Profits for the coming two financial years to March will now be in the range of £70mln to £72mln.
Market forecasts for the current year were between £78mln and £84.1mln.
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For the financial year to March, the market had expected an adjusted profit before tax of between £78mln and £84mln.
Debt at the end of this year will also be higher than forecast at £500mln compared to a previous estimate of between £470mln and £490mln.
The profit downgrade was due to three main reasons, analysts at Peel Hunt said: Heavy discounts have led to lower product margins; interest income has fallen in financial services due to tighter regulation and bad debts have risen.
Shares tanked 25% to 107p on Thursday morning.