Superdry issues another profit warning

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Superdry Julian Dunkerton
// Superdry warns that pre-tax profits will be lower than the current range of market expectations
// Profit warning attributed to “poor wholesale and ecommerce performance in Q4”
// Group revenue for the year was flat, but in Q4 it fell 4.5% overall

Superdry has warned that its full year profits will come in below market expectations, as founder Julian Dunkerton makes a start on revitalising the fashion retailer after narrowly being re-elected on to the board.

Superdry, which has issued a string of profit warnings, blamed the latest one on “poor wholesale and ecommerce performance” in the fourth quarter period ending April 27, where overall revenue declined by 4.5 per cent.

Ecommerce revenue was down 3.9 per cent during the period, while wholesale revenue declined 9.3 per cent, despite being up 3.6 per cent to £335 million year-on-year.

Superdry attributed the drop in wholesale revenue to “increased levels of returns, lower than anticipated in-season orders and decisions not to ship to customers that had reached their credit limits”.

In-store sales improved in the fourth quarter, but sales were still down 3.7 per cent year-on-year to £373 million.

Meanwhile, the British retailer said its overall revenue for the year was flat.

It added that it has started taking actions “to address this underperformance” by increasing the number of options sold online and raising stock levels in selected flagship stores.

“My first priority has been to stabilise the situation, and all of us in the business are putting all our energy into getting the product ranges right and improving the ecommerce proposition, which are two important steps towards addressing Superdry’s recent weak performance,” interim chief executive Julian Dunkerton said.

“The impact of the changes we are making will take time to come through in the numbers but I’m confident we are heading in the right direction.”

Superdry is slated to provide full details on its performance and profits when it releases its full year results announcement in July.

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