Shares in Umbro dived this morning after the sportswear group gave warning that UK stores are struggling to offload England football kit after the World Cup.
The company said in a statement: “The UK market place remains an extremely tough and ‘price led’ environment in which to operate.
“The Group’s ability to maintain margins in the UK is coming under increasing pressure and UK margins will be below expectations for the full year.”
As a result, full year profits for the whole group around the world would be “marginally” below the board’s forecast, it added.
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At 9.50am the shares were off 12.5p to 131.5p. To track the stock click here.
Although all of Umbro’s England-related products have now been delivered to retailers, post-tournament sales from high-street shelves have been slow. That means it has taken longer for retailers to pay Umbro and annual interest charges on Umbro’s debt have risen.
Chief executive Peter McGuigan added that expansion in China was on track, though trading in the US was still below his expectations.
He said: “Looking ahead to 2007 it is expected that we will continue to deliver good growth internationally with the UK market place remaining challenging.”