A brace of autumn profit warnings

Marco Green
October 15, 2018

Superdry blamed a hit to sales from unseasonably hot weather and rising foreign exchange costs for the profit warning.

It also said hedging mechanisms it put in place had not provided the degree of protection expected, which will lead to around £8m in additional foreign exchange costs, split evenly over the year.

Hot weather in the UK, Continental Europe and the East Coast of the United States has affected demand for autumn and winter clothes, particularly pants and jackets, which amount to 45 per cent of annual sales, the company said.

Good morning: We may have enjoyed the unseasonably warm weather of recent weeks but it has proved to be a real headache for Superdry. The company is, however, five months into an 18-month plan to diversify its range to reduce reliance on winter sales.

Superdry said that this, added to the "well-publicised challenges" faced by some of its trading partners - at a time when the struggles of department stores have hit a number of clothes brands - would adversely impact profits by £10m.

The wider turbulence in the clothing market has included the collapse of House of Fraser, which left Superdry out of pocket by £236,000.

Retail analyst Nick Bubb said that, given some other retailers have warned about the warm autumn weather, the Superdry statement could have been expected.

Superdry will issue its scheduled first-half results announcement on 8 November.

Other reports by Click Lancashire

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