Shares in sportswear retailer Footasylum (FOOT) fell close to 50 per cent after the group cut its earnings guidance for the 2019 financial year for the second time in three months. Gross margins are still under significant pressure, particularly as lower footfall on the high street during July and August led to disappointing store sales.
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As a result, full-year revenues will come up short which, combined with rising costs and widespread discounting, will put further downward pressure on cash profits. Analysts at Liberum have cut their cash profit forecasts by more than 64 per cent to just £4.9m.
