Superdry has issued a profit warning after it said “unseasonably hot weather” had impacted its autumn and winter sales.
The fashion retailer said it estimated profits to come in £10m lower than previously expected due to the warmer weather in the UK, continental Europe and the east coast of the US. Superdry also pointed to the fact that its autumn/winter sales accounted for around 45% its annual sales.
Superdry also said the problem has continued into October with regards to the sales of its sweats and jacket products. The company also blamed its financial results on £8m worth of additional foreign exchange costs.
Superdry is five months into its 18-month product diversification and innovation programme to broaden choice for its global consumers, which will address its reliance on heavier weight products.
Euan Sutherland, CEO of Superdry, said: “Superdry is a strong brand with significant growth opportunities, backed by robust operational capabilities, but we are not immune to the challenges presented by this extraordinary period of unseasonably hot weather. We are well prepared for peak trading, but the second half of financial year 2019 presents both risks and opportunities.
“We continue to focus on delivering efficiencies and cost savings to meet the current challenges and have confidence in our strategy for growth and so are accelerating investments in our future. There are significant opportunities ahead for Superdry in terms of geographical market expansion, category extensions and growth and the ability to leverage its multi-channel operating model in a digital world to deliver to customers in whichever way suits them best.”