Sanderson Design, the upmarket interiors firm, has issued a warning over plummeting profits due to weak demand from shoppers in January.
The company, which sells Morris & Co, Harlequin and Sanderson products, reported that brand sales of wallpapers and fabrics increased by 5% year-on-year in December, but fell by 13% in January as shoppers tightened their belts.
Sanderson also revealed that it expects to end the year to January with higher levels of stock than anticipated due to subdued customer demand, particularly for fabric.
It further noted that brand product sales have also been impacted by "softness in the contract market at the end of the year, particularly in North America", but emphasised that its pipeline of potential orders remains strong.
Sanderson informed shareholders that group sales are expected to be around £101m for the year to January, down from £108.6m a year earlier.
