Shares Drop Amidst Zero Profit Before Tax Reporting and Store Closures
- Laura Ashley shares drop 20% after profit warning
- Company reports zero profit before tax for H1 2018
- Total group sales decreased £11.8m compared to 2017
- Trading conditions in Q3 2019 described as ‘very demanding’
- Board reviews full-year forecasts, results expected below market expectations
Laura Ashley has seen its shares plunge 20% in early trading after issuing a profit warning, indicating figures will fall significantly below market expectations. The company reported zero profit before tax for the last six months of 2018 and total group sales decreased £11.8m to £122.9m compared to the same period in 2017. The company, which operates 156 stores across the UK, described trading conditions during Q3 2019 as ‘very demanding.’ In a short statement, Laura Ashley said: ‘Trading conditions have been very demanding over the third quarter. The board of the company have reviewed the revised full-year forecasts for the year ending 30 June 2019 and expect the results to be significantly below market expectations.’ Last year, the company closed 40 of its UK stores and announced plans to expand its Chinese business.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Laura Ashley’s financial performance and the reasons for the drop in share prices. It reports on the company’s profit warning, half-year update, and the board’s revised forecasts. The information is relevant to the main topic and not overly dramatic or sensationalized.
Noise Level: 5
Noise Justification: The article provides relevant information about Laura Ashley’s financial performance and profit warning but lacks in-depth analysis or exploration of long-term trends or possibilities. It does not hold powerful people accountable or explore consequences on those who bear the risks. The news is mostly focused on reporting the company’s financial performance without providing actionable insights, solutions, or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: Laura Ashley’s shares
Financial Rating Justification: The article discusses a company’s profit warning, stock price movement, and changes in sales figures, which are all financial topics. It also mentions the impact on the company’s shares in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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