Superdry's profits must be contained in the face of weather problems and the collapse of meeting rooms



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A close-up of Superdry (PA) brand clothing
A close-up of Superdry (PA) brand clothing
  • Superdry's profits must be contained in the face of weather problems and the collapse of meeting rooms

    Independent.ie

    Superdry is expected to record lower profits on Wednesday amid warmer weather, while its founder plans a return to business.

    https://www.independent.ie/world-news/superdry-profits-to-be-subdued-amid-weather-woes-and-boardroom-bustup-37608235.html

    https://www.independent.ie/world-news/article37608234.ece/b613e/AUTOCROP/h342/ipanews_c293a969-6927-42d9-ac9a-e2bc20252757_1

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Superdry is expected to record lower profits on Wednesday amid warmer weather, while its founder plans a return to business.

Pre-tax income for the first half of the year is expected to be approximately £ 17 million compared to £ 25.3 million for the same period last year.

In October, the company warned that the cold climate was affecting its business, which is generally the driving force behind sales of its main line of coats and winter clothing.

At the same time, the founder, Julian Dunkerton, has criticized the current management and is addressing the shareholders of Superdry in order to gain support for an attempt to return to the company.

Investors will look closely at the numbers, after Dunkerton said in November that his trading statement was bleak.

Andrew Wade, an badyst at Numis, said the recent developments were adding to deeper problems for the retailer.

He said: "Far from the noise of the current transactions and suggestions that the founder and main shareholder Julian Dunkerton would like to return to the sector, we continue to fear that the problems faced by the sector, as evidenced by the significant drop in the retail contribution margin, deeper than the weather and lack of product diversification ".

Last month, Superdry maintained its intended strategy, saying it had made progress in changing its lineup with denim and t-shirt offerings.

However, Euan Sutherland, general manager, said it could take up to 18 months for the benefits to flow.

At the same time, Liberum badysts warned in November that Superdry stores and franchisees would remain with a winter-filled hangover. This could further weaken the profit margin if the product was sold at a heavy discount.

Press Association


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