Superdry Owner Warns On Warm Weather Trading

Written By Unknown on Minggu, 02 November 2014 | 00.02

The company behind Superdry is the latest clothing retailer to warn of a hit to profits from the unusually warm autumn.

SuperGroup said it had cut its full-year profit guidance - now in the range of £60m to £65m - from analyst forecasts of up to £73m.

Total retail sales in its second quarter to 25 October were up 11.4%, including new space, but fell 4.2% on a like-for-like basis at stores open over a year.

Its trading update said: "As widely reported by other retailers in the apparel sector, after a strong start to the quarter, September and October have both seen an exceptional period of warm weather across the UK and the rest of Europe which is expected to continue into November.

"This has resulted in a high degree of uncertainty around the future performance of the autumn/winter range, particularly outerwear which is a significant part of the Superdry product mix.

"As a result, the Group is adopting a more cautious view on the full-year outcome.

"Whilst recognising that 70% - 80% of the Group's full year profit is delivered in the second half of the year, the level of sector discounting and continuing weather-related uncertainty, together with the planned strategic investment in the cost base, has led the board to revise its full year profit guidance to a range of £60m-£65m."

Market values in M&S and Debenhams were among those hit earlier this week when Next warned the warm weather would result in profit damage of £25m.

The country's second-largest clothing retailer, which had warned one month ago that a lack of typically autumnal conditions in October would result in lower profit expectations, said third-quarter sales still grew by 5.4%.

But the growth was almost half the 10% it had previously forecast as demand for winter wear remained weak.

Its announcement signalled trouble for the wider clothing sector in the run-up to the Christmas trading season because Next has largely outperformed its rivals for a decade.


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