Jessops issues profits warning after sales slump
Jessops warned its annual profits would be below expectations today after seeing a continued decline in the digital camera market.
Jessops has experienced a further deterioration in trading conditions since its Christmas trading update in 8 January. For the UK market as a whole in January, digital compact camera sales were down 10.8% by value, memory cards down 14% and camcorders down 16.8%, the group added. The profit warning led to Jessops shares losing more than a quarter of their value. In afternoon trade, the shares were down 28 pence, or 26%, at 78.5p.
Chief executive Chris Langley said the company had previously indicated that it expected the digital compact camera market to peak this year, and had seen demand for these cameras decline over Christmas.
“What has surprised us from this latest data is the speed with which this market appears to have deteriorated and it is very disappointing to have to revise our forecasts down so significantly,” he said.
