Superdry profits fall 49%, shares plunge

Superdry reported a 49% fall in half-year profits on Wednesday, sending shares down as much as 32%.

The clothing brand reported underlying pre-tax profits of £12 million for the six months to the end of October.

It now said it expects full-year profits of between £55 million and £70 million. This proved behind analyst expectations of £84 million.

The retailer attributed unseasonably warm winter weather for the poor performance, with sales in coats and jumpers falling across the period.

Chief executive, Euan Sutherland commented on the results: “Superdry had a difficult first half, impacted by unseasonably warm weather across our major markets, a consumer economy that is increasingly discount-driven and the issues we are addressing in product mix and range.

“Superdry is a strong brand and has strong operational capabilities. We are focused on an intensified transformation programme to reset the business and address the legacy issues we face, particularly in product mix and range.”

Superdry is one of many high street retailers feeling the impact of continued economic uncertainty.

Figures have suggested that 2018 marks the worst start to the year for UK retail in almost a decade, as shops grabble with shifting consumer shopping habits and tighter consumer spending in recent years.

Superdry has 102 stores in the UK and a total of 246 worldwide. The company is headquartered in Cheltenham, where it was originally founded in 1985.

Shares in Superdry (LON:SDRY) currently trading -33.29% as of 12:23PM (GMT).

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