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Laura Ashley shares plunge on fresh profit warning

Struggling Laura Ashley has issued a fresh profit warning, saying investors should brace for figures "significantly below market expectations."

It announced the fresh guidance in a short statement following its third quarter, which it described as "very demanding".

Shares fell 20% on the news though they later partially recovered and were 3.6% down at the close.

The update followed the release of its half-year results in February when the fashion and homewares firm reported a £1.5m loss amid "continued market turbulence".

Then, it said that like-for-like retail sales were more than 4% down on the same period a year earlier as demand for things like furniture and furnishings tumbled.

The company, which has 156 stores, has not been immune from the wider pressures on the high street that has seen scores of chains struggle in a toxic climate of weak consumer confidence and higher costs from things like rents, wages and business rates.

Debenhams, one of its competitors, fell into the hands of its banks earlier this month.

Like Debenhams, Laura Ashley was slow to invest in its online offering where it is currently flogging products in a sale with markdowns of up to 60%.

It has been eyeing a shift in strategy, including investment in tea rooms and hotels.

Another struggling company to report on its fortunes on Thursday was Carpetright.

Its shares surged 83% to 28p after it revealed a recovery in comparable sales following a rescue deal that allowed it to close 81 loss-making stores and restructure its finances.

The shares are still below their level of 33p a year ago and are worth a fraction of their value back in 2015 when the stock was trading at more than £5.

Chief executive Wilf Walsh said: "This has been a transitional year for Carpetright and we remain on track both with our recovery plan and our strategic initiatives.

"The actions taken are driving improvement, particularly in the invested store estate, and the brand remains strong.

"Whilst consumer confidence remains challenged in the UK, the work we have done to reposition the business is starting to deliver the benefits necessary to put Carpetright back on the path to sustainable profitability."