Superdry issues profit warning as heatwave impacts sales

Against a backdrop of widely reported weaker consumer confidence across its key markets, Superdry said in a statement that effect of the weather conditions experienced in the first half of the financial year, when combined with challenges facing some of Superdry's trading partners, is expected to adversely impact profits for FY19 by around 10 million pounds. Secondly, foreign exchange hedging mechanisms, the company added, have not provided the same degree of protection as expected, which are expected lead to around 8 million pounds in additional foreign exchange costs.

Commenting on the update, Euan Sutherland, Chief Executive Officer of Superdry, said in a statement: "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."

In terms of the expected first-half sales outturn, the company currently expects to report mid-single digit global brand revenue growth; low to mid-single digit statutory revenue growth; mid-single digit ecommerce revenue growth with owned sites expected to deliver low-teens digit revenue growth; high-single digit wholesale revenue growth with full-year revenue growth also expected to be high-single digit; and low-single digit owned store revenue decline.

Picture:Facebook/Superdry

 

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