Character trades in line despite 'adverse factors'
Toymaker Character Group said on Tuesday that sales momentum had continued through the remainder of the year ended 31 August despite the influence of "adverse factors".
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Character Group said despite continuing high freight rates and the increasing strength of the US Dollar, it expects underlying pre-tax profits and highlighted items for the year ended 31 August to be broadly in line with current market expectations.
The London-listed group stated it was now focused on the lead-up to the all-important Christmas trading period, with industry previews of its new product ranges and introductions for the 2023 season being "well received" by both its customers and prospective customers alike.
However, given current macroeconomic headwinds, including the weakness of Sterling and the expected curtailment of consumer spending in the lead-up to Christmas due to concerns over cost-of-living increases, Character said trading conditions remain "challenging".
"Against this economic environment and although only one complete month into the 2023 financial year, the board considers that the trading performance for the current financial year is unlikely to match the expected outcome for the year ended 31 August 2022," said Character.
As of 0900 BST, Character shares were down 7.98% at 450.0p.
Reporting by Iain Gilbert at Sharecast.com