Superdry Issues Profit Warning Amid Sales Drop

Unusually mild autumn weather and reduced digital marketing spending contribute to a 13% decline in retail sales, leading to an all-time low in share price.

• Superdry, the UK fashion retailer, has issued a profit warning due to a 13% drop in retail sales in the six months to the end of October, blaming 'abnormally mild' autumn weather for the decline in demand for its autumn and winter range.
• The company's share price fell to an all-time low following the announcement, with shares dropping as much as 32.5%.
• Superdry's online sales were also affected due to reduced spending on digital marketing, and its wholesale sales dropped 41% in the first half, partly due to the company exiting its US operation.
• Despite some improvement in sales with the recent colder weather, Superdry reports that trading performance has been significantly below management expectations, with like-for-like sales down 7% in the six weeks following the end of the reporting period.
• Superdry is currently on a £35m cost-cutting drive, which includes redundancies at its head office and the sale of the rights to its brand in some Asia Pacific countries.

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