Superdry warns on profits as tough trading conditions and weather take toll

Superdry said that a “challenging consumer retail market and the abnormally mild autumn” hit sales in the first half of its financial year.

Superdry’s retail division suffered a sales decline of 13.1% in the period to October 28. Online performance as well as stores were affected by the weather, and ecommerce marketing was cut as profit was prioritised.

Wholesale was down 41.1%, partly reflecting an exit from US wholesale, but the channel overall underperformed.

Although performance has since improved, helped by more typical seasonal weather in the UK and Europe, sales in the six weeks since the half-year still slid 7% like-for-like.

Superdry reported that “profits for the year are therefore expected to reflect this weaker trading seen to date.”

Chief executive Julian Dunkerton said: “The unseasonal weather through the early autumn led to a delayed uptake of our Autumn/Winter range and this impacted sales in the first half of the year.

“While 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 IP sale for the South Asian region and strong progress on our cost efficiency programme.”