The luxury kitchens retailer, which has posted a string of record profits in recent years, said it expects profits to be “materially below” market expectations for the year ending December 31.
Smallbone group chief operating and financial officer Gordon Montgomery said that due to the present economic conditions the retailer has experienced a decrease in demand.
Additionally, sales that ordinarily fall into the 2008 financial year will now fall into 2009 because of an average increase in delivery times from eight to 10 months.
“While we have a pretty strong order book, we’re planning for what might be a more difficult year next year,” said Montgomery.
Pali International analyst Nick Bubb said: “You can see in the John Lewis figures that upmarket retailers are feeling the pinch,” he said. “City jobs are being lost and there will be fewer Smallbone kitchens being sold as a result.”
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