Aston Martin posted a trading update on Wednesday in which it cut its sales and profit expectations for its current financial year.
Shares in Aston Martin (LON:AML) were sent crashing over 20% following the announcement.
The company had confirmed its plans to float on the London Stock Exchange last year.
The iconic luxury British sports car manufacturer said that the challenging external environment it had previously highlighted in May has worsened, alongside macro-economic uncertainties.
“We anticipate that this softness will continue for the remainder of the year and are planning prudently for 2020,” Aston Martin said in a statement.
The company now expects wholesales for 2019 to be between 6,300-6,500, below the guidance announced earlier this year.
Adjusted operating profit margins are also anticipated to be lower than previously expected.
“Whilst retails have grown by 26% year-to-date, our wholesale performance is adversely impacted by macro-economic uncertainty and enduring weakness in UK and European markets,” Dr Andy Palmer, Aston Martin Lagonda President and Group CEO, said in a statement.
“We are disappointed that short-term wholesales have fallen short of our original expectations, but we are committed to maintaining quality of sales and protecting our brand position first and foremost,” Dr Andy Palmer continued.
“We are today taking decisive action to manage inventory and the Aston Martin Lagonda brands for the long-term. We remain focused on the successful execution of the Second Century Plan and on delivering sustainable long-term growth.”
Founded in 1913, Aston Martin is one of the UK’s most iconic brands and has become synonymous with James Bond.
Shares in Aston Martin Lagonda Global Holdings plc (LON:AML) were trading at -22.5% as of 09:18BST Wednesday.
