TheWorks.co.uk – which sells books, arts and crafts goods and stationery – has warned that its full-year profits are set to be “significantly” below forecasts.
The retailer said total revenues in the half-year to 27 October were up 5.4%, but on a like-for-like basis – which strips out the impact of store openings and closures – they fell 3.6%.
The company has been expanding rapidly with a net 28 store openings in the first half of the year, and it said it was on track to deliver a net 50 new store openings for the full year.
While the firm said like-for-like sales had improved in recent weeks, they were “not at a level previously expected”.
As a result, it is taking a more cautious view of Christmas trading, and it “now expects full year profit before tax to be significantly below current market expectations”.