The doom and gloom news of the UK's impending credit crunch seems to have already seriously affected one luxury goods industry – the high-end hi-fi industry.

Leading brand Bang & Olufsen is clearly feeling the pinch, issuing its third profit warning so far this year.

Bang & Olufsen's pre-tax profit for its 2007-2008 fiscal year to the end of May is around 155 million kroner (£17 million), down by 45m-95 million kroner on the company's first estimates.

Shares plummet

The company's share price has plummeted, down 71 per cent over the past year.

"The uncertainty of the global economy has made it very difficult to foresee market developments," said Bang & Olufsen in a statement.

"B&O's traditional selling point has been design, and it is increasingly difficult to differentiate yourself when the product is something flat that hangs on the wall," an industry analyst told the Financial Times.