Shares in shoe store chain Footasylum (LON:FOOT) fell over 45 percent on Tuesday, after the company’s CEO said it had been impacted by weak consumer sentiment.
The group reported strong results over the period so far, with sales increasing to £194 million after opening ten new stores. In the 52 week period to the 24th February pre-tax profit rose 4 percent to £8.4 million, with revenue up 33 percent to £194.8 million. The group saw a real rise in online sales, up 41 percent and now accounting for 30 percent of total revenue.
However, investors were spooked by a warning from the company’s chief executive Clare Nesbitt.
“While our core target market of the 16 to 24-year-old consumer has proved to be comparatively resilient in a downturn, our trading since the beginning of the new financial year has undoubtedly been impacted by the widely documented weak consumer sentiment on the High Street.”
Over the period the company expanded its distribution space to 278,000 sq ft, as well as opening a second warehouse facility in Rochdale.
Shares in Footasylum are currently trading down 46.33 percent at 89.90 (0938GMT).
