MusicMagpie PLC has warned full-year profits to the year-end 30 November will be below expectations.
The second-hand DVDs, CDs and electronic goods marketplace had predicted better trading performance in a statement issued in July but warned that margin pressures persisted in the consumer technology market, which accounts for two-thirds of its business.
Cautious consumer behaviour in August and September led to slower growth at its musicMagpie stores, which other sales channels have so far been unable to offset.
As well as that, it forecast that the economic outlook and cost-of-living crisis will impact business in October and November, two months which are “material contributors” to the overall performance given the consumer interest around Black Friday, it said.
While it still expects Black Friday to be the peak of its trading, it said it is “prudent to reduce its expectations for contribution from this period.”
MusicMagpie floated in April 2021 at 193p.
Shares today fell 67% to 8.9p.