StockMarketWire.com - Industrial thread company Coats has delivered a profit warning as a 'challenging' market leads to slower sales.

In a year-end trading update the company reported that sales growth for the 12 months to 31 October was up 1% on a constant exchange rate (CER) basis. This was driven by growth in its Apparel and Footwear division and Performance Materials Arm of 1% and 2% respectively. Adjusted operating profit is expected to come in at $196m to $201m, below expectations.

For the four months from July to October 2019, group sales were flat on a CER basis (up 2% in H1), reflecting slightly lower activity in both Apparel and Footwear and Performance Materials and against the strong growth of 4% in the comparative period in 2018.

On a reported basis, group sales in the four-month period were down 1% year-on-year, an improvement on the 3% decline in H1.

This improvement was largely due to the anticipated softening of the foreign exchange translation headwinds that the company entered 2019 with.

The company adds it 'will continue to drive performance through a focus on customer service and building on its innovation and digital capabilities, supported by its self-help initiatives'. Story provided by StockMarketWire.com