Drake Circus fashion store falls victim to retail meltdown

Source: https://www.plymouthherald.co.uk

It only arrived in Plymouth two years ago but “on point” streetwear store Footasylum has now seen shares plummet after profits were predicted to halve across its 65 outlets.

The company, which opened in the mid tier of Drake Circus Shopping Centre in late 2016, has become the latest fashion retailer to issue a warning about full-year profits and sales.

The company said its revenue growth and earnings will come in “significantly lower than previous guidance”.

It now expects to bring in less than half of the £12.5million it banked in profits in the year to February 2018.

It is second profits warning the chain has issued in less than three months.

The company, famous for its use of street slang, blamed a “challenging” August 2018 and warned there is “no sign of a recovery in the short-term on the high street”.

Footasylum shares went into freefall following the update, with the recently-floated group’s stock plunging nearly 50 per cent in morning trade on September 3, to 44p.

The group said in a statement: “Trading since the beginning of the current financial year has been impacted by weak consumer sentiment on the high street.

“Store performance during July and August was more challenging which, in the context of there being no sign of a recovery in the short-term on the high street, has led the board to reassess its overall expectations for the balance of full-year 2019.”

Categories: Business, Retail

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