Superdry warns on profit after ‘difficult’ first half
Superdry has warned on profit after experiencing “difficult” trading in the first half of its financial year.
The clothing retailer has also reported that its underlying pre-tax profit fell by 49% to £12.9 million although group revenue was up 3.1% to £414.6 million in the period.
Superdry said unseasonably warm weather in November and December had impacted sales across all of its main markets. Due to its reliance on sales in its prime category of cold weather clothing, the company said sales have remained under pressure despite a good performance during Black Friday week. This has resulted in an adverse profit impact of around £11 million in November and a potentially similar impact in December if trading conditions do not improve.
Taking into account continued uncertainty regarding the weather and both the wider economic and political situations, Superdry said it now expects underlying pre-tax profit to be in the range of £55 million to £70 million for the full year compared to analysts’ expectations of around £84 million.
Superdry is currently working through an 18-month programme to create a more diverse range of products as it looks to address its over-reliance on jackets and sweats. It will also launch a kidswear range. In addition, the company has said that it is reviewing its store portfolio which could result in some closures.
Euan Sutherland, Superdry chief executive, said: “Superdry is a strong brand and has strong operational capabilities. We are focused on an intensified transformation programme to reset the business and address the legacy issues we face, particularly in product mix and range.”
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