SuperGroup issues shock profit warning
SuperGroup, owner of fashion brand Superdry, has reported that issues relating to an upgrade of its warehouse management system has caused a "significant, temporary reduction" in the amount of stock and sizes reaching its stores.
The retailer warned that the resulting lost sales and costs incurred to resolve the problem will impact the current year's profitability by between £6-9 million.
While the majority of the system issues have been rectified, SuperGroup said some are still ongoing. Temporary warehouse facilities have been commissioned to address capacity requirements and the group expects its distribution capability to return to normal levels of operation in November.
The company said in a statement issued today: ”Whilst the issues outlined above are an unwelcome temporary set-back, these changes to our warehouse management systems are vital in supporting the significant growth we continue to experience in the business. Our strategy is unchanged and we have a high level of confidence in the Group's future growth prospects."
SuperGroup said its new UK store opening programme is likely to be at the upper end of Q2 guidance with eight new stores opened since the beginning of the financial year.
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