Seraphine Group PLC (LSE:BUMP) warned lower first-half revenues would push the group into the red as it reported softer trading during the summer months.
Shares in the maternity and nursing wear retailer tumbled 23.6% as the group estimated product revenue in the first half would be around £19mln, down from £20.8mln last year with an EBITDA loss of around £1.5mln.
The group said it had been hit “by the continuing challenging retail trading environment and softer trading during the summer months”.
Own digital platform sales declined around 9% year-on-year, primarily driven by the previously flagged inflation in marketing costs and, as a result, lower than planned spend, while digital partner revenue was lower, as expected, as the business manages this channel with a focus on improved profitability.
Seraphine said the start of the Autumn/Winter season was particularly encouraging but more recent trading has been weaker, again, in line with the broader sector and it expects volatility in trading to continue throughout 2023.
However, it does believe the second half will be an improvement on the first, with a profitable outcome forecast.
David N Williams, CEO, said: "Along with many retailers, the summer months were challenging for Seraphine.
“Our outlook is for the second half to be better than the first given the extremely weak summer period and softer forward comparatives, although we expect performance trends to remain highly volatile throughout."