Clinton greets sales fall with profit warning
Clinton Cards today became the latest retailer to warn on profits after sales fell and efforts to rejuvenate the Birthdays chain ran into trouble.
The company said sales at its core Clinton brand had fallen by 1.9% during the 24 weeks to July 17 and it no longer expected to meet market expectations for operating profits.
The news sent shares down more than 11% as Clinton had told investors at the end of May that sales in its financial year so far were flat. Analysts said this meant sales over the past eight weeks could be as much as 6% lower.
According to his estimates, it now looked like Clinton’s profits would be well under £25m (€35m) this year compared with £35m (€50m) in its last financial year.
Today’s trading update means Clinton joins retailers which have already warned on profits this year such as clothing chain French Connection.
Clinton also conceded that it was failing to meet its targets for turning around the Birthdays chain, which it bought before Christmas.
