Footasylum (LON: FOOT) shares plunged on Monday morning after the group warned of lower profits.

Shares in the group fell tumbled over 50 percent to 40p, valuing the company at about £42 million.

“These are undoubtedly challenging times in the retail industry and, in common with many other businesses, Footasylum’s trading has continued to be impacted by weak consumer sentiment,” said Barry Bown, the executive chairman.

“On top of that, increased clearance in stores has led to a reduction in gross margin, and we have also had some unforeseen delays in our new store openings and upsizes. However, we have continued our programme of investment, both in upsizing our stores and in our digital capabilities, and are working hard on a number of initiatives to maximise the Company’s performance during the upcoming peak trading period,” he added.

The company reported a rise in sales of 18.5 percent in the six months to 25 August but said sales since have been “more challenging”.

The retailer has adjusted earnings for the fiscal year 2019 so they are “significantly lower”.

The group said sales in the months of May and June were strong but sales for July and August were “more challenging” amid the tough retail environment as there is a growing shift towards online shopping.

Revenues for the half-year are expected to grow 18.5 percent to £98.6 million.

Despite the challenging outlook, we are encouraged by the continuing progress that we are making in improving our online performance, rolling out our store opening programme, and further enhancing our supplier relationships, and therefore remain confident in the Company’s long-term prospects,” Brown added.

Analysts at Liberum said that lowering its outlook again was “highly disappointing” and the rest of the current financial year is also “likely to be difficult”.

“The group should hopefully start to see the benefits from some of the initiatives laid out by the executive chairman, but these take time to deliver,” the analysts added.