Shares in homeware retailer Laura Ashley (LON:ALY) dropped nearly 10 percent on Thursday morning, after the company issued a profit warning in the wake of disappointing Christmas trading.

The group said “continued market challenges” would have an impact on profits in 2018, after like-for-like sales fell 0.5 percent in the half year December and pre-tax profit fell nearly 50 percent to £4.3 million.

Online sales were stronger, however, growing by 5.1 percent, and Laura Ashley chairman Khoo Kay Peng said he hoped the launch of a new online platform would boost figures throughout 2018.

The retailer’s hotel division also fared well, with the two UK boutique hotels reporting growth of £1.2 million for the period. Its Laura Ashley-furnished “Tea Room” experiences in other hotels also performed well.

Shares in Laura Ashley are currently trading down 9.67 percent at 5.51 (0938GMT).