Superdry shares fall as profit warning issued

Fashion retailer warns that underlying profit before tax is expected to range up to £10m compared with forecasts of £30m to £33m

                                

Shares in fashion retailer Superdry were down by almost a fifth as the company issued a profit warning following underwhelming sales over the Christmas trading period.

Superdry warned that underlying profit before tax was expected to range up to £10m for the year to the end of April, compared with forecasts from the company’s joint brokers of £30m to £33m.

The group said a fall in consumer demand and discounting on the high street had led to lower than anticipated retail sales of £23m since Black Friday. That compares to analyst expectations of a £40.5m profit for the year.

Most of those £23m sales were online but Superdry warned the challenge will remain until it launches its autumn/winter 2020 range.

“Everyone at Superdry continues to work intensively to deliver the turnaround of the business,” said chief executive Julian Dunkerton.

“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.”

Additionally, Superdry said its wholesale performance was hurt by “certain timing issues” that caused a £5m shortfall in anticipated sales.

Superdry shares were down 19 per cent to 383.77p in early London trading.

FURTHER READING: British retailers see worst year on record in 2019

FURTHER READING: Lidl leads the way in UK Christmas sales

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