Investec welcomes Supergroup shake-up but warns on weather
Broker Investec has welcomed changes at the top at fashion retailer Supergroup but is cutting its forecasts amid worries about the impact of warm weather on clothing retailers.
Supergroup announced on Wednesday that the former chief executive of the Co-operative Group, Euan Sutherland, is replacing founder Julian Dunkerton, who will move into a new role overseeing development of the Superdry brand.
Investec said the move to appoint Sutherland, who has been a non-executive at Supergroup for about two years, provided insight into the board's thinking on ways to cash in on the popularity of the brand overseas.
But it voiced concern about the company's vulnerability to the warm autumn weather that has already affected sales at rivals Next and N Brown.
Analyst Kate Calvert said: "We reiterate our 'buy' but cut forecasts by 4% to reflect the continued warm weather and currency."
Investec also cut its target price to 1420p. Shares in Supergroup fell 52p or 5% to 977p at 16:02 in London.