Shares in Superdry have plunged by greater than a 3rd after it issued its second revenue warning in lower than two months – blaming gentle climate for a possible £22m hit to its backside line.
The style model stated “unseasonably heat” situations in November and into December had dented demand for its jackets and different chilly climate ranges – and admitted it was over-reliant on these merchandise.
It additionally pointed to the influence of “wider political and financial uncertainty” and altering client behaviour within the peak procuring season as stated it anticipated full-year underlying earnings of £55m to £70m, in contrast with a market forecast of £87m.
Superdry launched a company-wide shake-up earlier this yr which it now says will embrace a evaluate of its retailer community – and will see closures, downsizing, relocation or renegotiated rents because it regarded to chop prices.
The corporate issued its revenue warning because it reported a 49% fall in earnings to £12.9m for the six months to 27 October.
It got here as Spanish rival Inditex, proprietor of the Zara chain, additionally blamed milder-than-normal climate because it missed third quarter forecasts.
Superdry stated its reliance on chilly climate associated merchandise meant – in addition to “lack of innovation” in some classes – that gross sales remained underneath stress regardless of a powerful efficiency in Black Friday week.
That has resulted in a revenue hit of about £11m in November and “a probably related revenue influence in December if buying and selling situations don’t enhance”.
Chief government Euan Sutherland stated: “Superdry had a tough first half, impacted by unseasonably heat climate throughout our main markets, a client financial system that’s more and more low cost pushed and the problems we’re addressing in product combine and vary.
“Our complete transformation will guarantee Superdry is effectively positioned as we optimise our routes to market and make our enterprise extra environment friendly.”
Its shares had been 38% down by the shut of buying and selling.
Superdry had beforehand warned of a £18m drag on its backside line in a revenue alert issued in October – additionally blamed on hotter than ordinary climate.
The corporate has been embroiled in a spat over technique with founder Julian Dunkerton, who left in March however has been pushing to return and is important of plans together with its launch of a kidswear vary.
Nevertheless it rejected Mr Dunkerton’s criticism because it briefed reporters on the most recent outcomes, with chairman Peter Bamford saying the founder’s views “haven’t advanced with the wants of what’s now a multi-channel, worldwide and more and more digital retailer”.