Superdry, best known as a maker and retailer for its winter jackets and hoodies, said it was yet to see sustained cold weather across its markets, leading analysts to worry about further risks to the British-based international fashion group’s full-year profits.
Superdry issued a profit warning last month, joining a growing list of UK fashion retailers hit by the unusually warm summer and autumn in Britain, continental Europe and the east coast of the US.
In the latest session, the shares lost 2.5%. That brings its losses to almost 53% in the past year and valuing the retailer at only £683m (€783m).
The company’s full-year profits are heavily influenced by its performance in the second half, led by cold-weather clothing with jackets and sweats accounting for 55% to 60% of autumn and winter sales.
“While some of our key markets saw colder weather conditions last week, with the result that our sales performance in those markets was more typical for this time of year, we have not yet seen a sustained period of seasonally typical weather,” Superdry said in a statement.
Investec analysts said that without a sustained cold snap, there was a potential downside risk to the company’s full-year forecasts.
The company, which has 658 stores in 59 countries, said revenue rose 3.1% in the 26 weeks to October 27.
E-commerce revenue increased 6.9% and wholesale revenue rose by 7.8%, the company said.
Superdry shares were up 1.5% at 869 pence at 0824 GMT.
The company warned in October that continuing warm conditions through September and into the first half of October had significantly affected demand for its autumn and winter range.
The group, which started out with one clothing market stall, is about six months into an 18-month product diversification programme aimed at reducing its reliance on heavier weight products and winter clothing, such as jackets and sweatshirts.
It plans to sell more dresses, skirts, women’s tops and denim, as well as expand into premium, sports and licensed goods.
At its investors capital day in October, the retailer said it planned to accelerate its drive into online sales.
It saw opportunities for expansion in the US and China.
It has started rolling out a chip-based tracking of individual garments from manufacture into its retail stores and will have completed the investment next year.
- Reuters. Additional reporting Irish Examiner