HIGH street fashion store Monsoon today issued a profit warning amid a further sales slump since the start of the year.
The group, which also owns the Accessorize chain, said trading continued to be difficult and that it needed a material improvement from its spring and summer ranges if it was to reach profits forecasts for the year to May 26.
It said it was likely to see pre-tax profits of between £46 million and £50m - less than the £55m expected from Seymour Pierce retail analyst Richard Ratner.
The news is the latest disappointment from the retailer, which reported lower half-year profits in January after a six per cent fall in like-for-like sales.
Monsoon added it had incurred additional costs and suffered some disruption to supplies as a result of the opening of a new distribution centre.
Today's warning comes despite the company having recently signed actress and model Liz Hurley on a six-month advertising contract, reportedly worth £1m, for its new Create A Storm campaign.
The firm is also looking to roll out its Fusion range, aimed at younger customers.
Monsoon said: "The group is confident in its spring/summer ranges and is taking steps to mitigate the effects of the difficult trading environment. In the absence of any material improvement, however, the group anticipates pre-tax profits will be below analysts' forecasts and in the range of £46m to £50m.
"
Want to read yourself in print? Every day the Evening News publishes a selection of online comments on the letters page of the paper. Pick up a copy to see if your views have been published.
News RSS