Fashion retailer unveils its autumn/winter profit warning

Superdry’s weather-related profit warnings are beginning to match fashion’s seasonal cycles after the retailer followed up its spring/summer collection of disappointing sales with today’s revelation of unexpectedly low autumn/winter revenues.

The fashion retailer has blamed “unseasonal weather” for lower sales, with the wrong weather also the cause for lower-than-expected sales eight months ago.

Superdry’s share price has fallen 90% since mid-2021 as it has struggled to turnaround its turnaround, which had begun with such optimism when founder Julian Dunkerton returned a year before the pandemic put paid to any long-term plans.

Dunkerton, who is the company’s chief executive, said “this has been a difficult year for the business” when he announced full-year losses of £148m in the year to April.

If anything, trading has become more difficult since. In the first half of the year, retail sales were down 13% and wholesale dropped 41% – albeit worsened by the decision to exit its US wholesale operation.

In the last six weeks, like-for-like sales are down 7% despite the arrival of winter weather.

Chief executive 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.

“Whilst 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.”

Dunkerton did point to “operational progress” the business has made, raising £28m through the IP sale for the South Asian region to Reliance Brands and “strong progress” on its £35m cost efficiency programme.