Full marks to Tony Shiret. Just a day after Credit Suisse’s veteran retail analyst took the red pen to his forecasts for DSG International and said the dividend may be cut, the group issues a stark profits warning.

The 23 per cent plunge in DSGi’s share price has wiped more than £415 million from the value of the business and the immediate future looks bleak.

Consensus full-year profit expectations have come down by around 15 per cent to £250 million and given the softening in consumer spending, it’s difficult to see an upturn in trading.

With earnings under pressure and dividend cover thin, the payout could indeed be threatened, forcing yet more sellers among the investor base.

All eyes will now be on John Browett, who joined as chief executive in December. His name was noticeable by its absence on the statement issued to the stock exchange this morning and personal reasons meant he couldn’t attend the analyst meeting.

Today’s warning could be followed by “kitchen sink” adjustments later this spring, as the former Tesco man tries to clear the decks before announcing the fundamental changes he wants to put into effect.

He will realise today that his strategy needs to delivered sooner rather than later.

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