LONDON (Alliance News) - John Lewis of Hungerford PLC Wednesday said it continues to trade ahead of the volumes experienced last year, with dispatched sales and the forward order book up 8.9% on a year earlier.
But the kitchen and furniture designer and manufacturer warned operating profit for the full year will be lower as it invests in new showrooms.
John Lewis of Hungerford's full year ends August 31.
In a trading update, the firm said its new Chiswick showroom opened last month as planned and expects to open a showroom in Cobham, Surrey at the end of July.
However, John Lewis of Hungerford said it remains the case that the length of its sales cycle and exposure to short-term changes in consumer confidence makes it difficult to extrapolate a "meaningful" full-year forecast.
Nonetheless, it said it remains confident that the outlook for the remainder of the year, although its expects operating profit for the full year to be below that reported a year earlier, reflecting the investments in the new showrooms, which forms part of its strategic plan "to drive long term value creation for shareholders".
John Lewis of Hungerford shares down 12% at 1.70 pence Wednesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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