Shares in Laura Ashley dived 16 per cent on Tuesday afternoon after the UK clothing and homeware retailer issued a profit warning.

The retailer, which was well known in the 1980s for its floral dresses but has since focused on home furnishings, said on Tuesday afternoon that that it expected full-year pre-tax profits to come in “materially below market expectations”.

“Trading conditions have continued to be demanding,” it said.

The move is the company’s second profit warning this year. It first warned in February that full-year net pre-tax profits “will fall below market expectations” because of “demanding” trading conditions.

Laura Ashley on Tuesday blamed the latest profit warning on a £2.8m impairment charge it will take over a revaluation of its freehold property.

The company is scheduled to report results for the fiscal year ending in June next Wednesday, August 23.

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