Warpaint London has issued a profit warning, blaming tough trading and ongoing Brexit anxiety in the UK.
Shares in the retailer, which supplies chains including Boots, Superdrug and Primark, plunged 45% at Monday lunchtime trading.
Expected annual profits for the year to be in the range of £8.5 million to £10 million, lower than the previous analyst forecast of £12 million.
Joint chief executives Sam Bazini and Eoin Macleod said: “Whilst the current UK market conditions are challenging we are seeing strong growth in our overseas sales.”
“We remain well positioned to take advantage of any improvement in UK market conditions and will continue our strategy of growing and diversifying our international sales. Warpaint is a profitable and cash generative business that is well positioned for continued growth.”
The company listed on the junior stock market two years ago at 97p.
Warpaint London blamed a slump in Christmas orders from British retailers. Whilst sales remained strong in the US and mainland Europe, it was not enough to make up for the lower demand in the UK.
“The UK market, which accounted for 44% of Group sales in the first half of the year, has seen further softening recently, with retailers reducing stock levels and Christmas orders,” said the group in a trading update on Monday.
“This reduction in previously anticipated UK sales will have an impact on Group performance for the full year that will not be completely offset by better than anticipated performance in our major overseas sales territories.”
The Buckinghamshire-based group was launched in 2002 as is aimed at 16 to 30 seeking “high-quality cosmetics at affordable prices”.
Back in February, they announced Love Island star, Olivia Buckland, to be the new face of the company.
Shares in the group (LON: W7L) are currently trading -45.02% at 112,70 (1511GMT).