Superdry warns on profit
Superdry has warned that its full year profits could be wiped out after group revenue fell by 15.8% in the Christmas trading period.
In a statement, the fashion retailer said trading had been slower than expected in the ten weeks to 4 January due to “unprecedented levels of promotional activity” on the high street as well as subdued consumer demand post-Christmas. The company also suffered due to shortages of some its better-selling products as its new management team looked to reduce its inherited inventory position.
Julian Dunkerton, Superdry chief executive, added: “Everyone at Superdry continues to work intensively to deliver the turnaround of the business. While we have always said it will take time, we continue to make progress in implementing our strategy.
“A key element of this is to focus on and return to full price sales and reduce promotional activity, and we halved the proportion of discounted sales over our peak trading period, benefiting both our margins and the Superdry brand.
“However this adversely affected our sales during the peak trading period given the level of promotional activity in the market. Despite this, our disciplined plan to reinvigorate the brand and return Superdry to sustainable long-term growth is on track.”
The company now expects full year unerlying pre-tax profit to come in at between zero and £10 million.
Superdry said it has been encouraged by customers’ reaction to the limited amounts of the new designs it has introduced.
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