19th Dec 2023 09:16
(Alliance News) - Superdry PLC on Tuesday warned its profit for its current financial year ending at the end of April will suffer amid the "well-documented challenging trading environment".
The Cheltenham, Gloucestershire-headquartered clothing retailer pointed to an "abnormally mild autumn" which resulted in a delayed uptake of its Autumn/Winter 23 collection.
Retail fell 13% year-on-year in the 26 weeks to October 28, as Wholesale plunged 41%, which it said was partly due to its US wholesale operation exit.
"Despite progress on strategic priorities and ongoing programme to recapitalise the balance sheet, the external environment has proven challenging and trading performance has been significantly below management expectations. Profits for the year are therefore expected to reflect this weaker trading seen to date," the firm warned.
Shares in Superdry plunged 15% to 35.65 pence each in London on Tuesday morning, having fallen to a 12-month low of 28.15p earlier in the day.
Superdry said that recently, the more seasonal weather in the UK and Europe helped sales edge up again, but added that sales in the six weeks since the half year were still 7% lower on a like-for-like basis than a year prior.
Founder & Chief Executive Officer Julian Dunkerton said: "Whilst we have seen modest signs of improvement through the recent spell of colder weather, current trading has remained challenging, and this is reflected in the weaker than expected business performance. The operational progress we have made in the first half has been more encouraging with the intellectual property sale for the South Asian region and strong progress on our cost efficiency programme."
By Tom Budszus, Alliance News slot editor
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