A major supply problem at Joules during the important Christmas trading period will hurt profits, the British fashion retailer warned on Friday.
Shares in AIM-listed Joules, known for its wellies and jackets, plunged 43.9p, or more than 19%, to 182.1p following the update.
The chain suffered from a “one-off” stock planning miscalculation in the seven weeks to January 5. More goods were sent to stores but not enough was available online.
Group sales fell 4.5%.
Chief executive Nick Jones said steps have been taken to prevent another stock issue, but profits for the year to the end of May are now forecast to be “significantly” lower than the £16.7 million the City had been expecting.
Joules also cautioned on second-half cost headwinds from US-China tariffs.
Jones said: “We remain focussed on continuing to expand the Joules brand and are making significant enhancements to our supply chain operations in the UK and US to deliver both future capacity growth and efficiency."
He said demand for the brand remains strong.
