Clothing retailer Superdry (LSE: SDRY) saw its share price tumble over 15% on Tuesday after the firm warned that profits would take a hit this financial year amid a “challenging trading environment”. The stock clawed back some losses but still traded down heavily at 36.00p.
Superdry blamed an unusually warm autumn for poor sales of its winter range. In the 26 weeks to late October, retail sales dove 13% and wholesale revenue crumbled 41%. Despite making progress on “strategic priorities”, profits will reflect this weaker trading, the company cautioned.
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Recently colder weather boosted trade, but sales remained 7% lower in the last six weeks. Founder Julian Dunkerton said: “Whilst we have seen modest signs of improvement through the recent spell of colder weather, current trading has remained challenging.”
With the stock down 73% year-to-date, Superdry shareholders will be hoping the chillier weather marks a turning point.
