Situation certainly not super as profit guidance is lowered by SuperGroup
Shares in SuperGroup slumped on Friday morning after the clothing retailer, which owns the Superdry brand, cut its profit guidance.
Superdry
8.50p
16:40 18/04/24
The group said the exceptionally warm weather had resulted in a "high degree of uncertainty" around the future performance of the autumn/winter range and consequently its full-year profit guidance has been reduced to a "more cautious" range of £60m-65m.
Analysts had predicted a range closer to between £69m and £73m.
Outerwear, which is a significant part of the Superdry product mix, had been particularly affected.
"Whilst recognising that 70% - 80% of the group's full-year profit is delivered in the second half of the year, the level of sector discounting and continuing weather related uncertainty, together with the planned strategic investment in the cost base, has led the board to revise its full year profit guidance," it said.
The group reported that quarterly like-for-like sales in the retail division declined 4.2%, although total retail sales grew 11.4%. In the wholesale division, sales totalled £51.3m, reflecting a decrease of 3.7%.
Second-quarter group sales weakened to growth of 4.5%, compared to 9.0% for the first half.
"As a result of the difficult trading environment, partners have been staggering deliveries which has affected the timing of despatches across the half-year end and impacted on the quarterly sales performance," Supergroup explained.
It now anticipates that the majority of the orders awaiting despatch will be made early in the third quarter.
Progress continued to be made in internationalising the business and developing the brand globally.
"As the group enters its peak trading quarter, Superdry stores are well prepared and the group's growth strategy remains on track and unchanged by the short term external events being experienced," it added.
Shares had tumbled 8.09% to 813.41p by 08:44.