Superdry PLC (LSE:SDRY) has issued a profit warning despite revenues climbing over the Christmas period as the global macroeconomic outlook remains challenging.
The clothing retailer said it now expects to break even for the full-year, compared to previous estimates of £10mln to £20mln in pre-tax profits.
This is due to increasing uncertainty and an underperformance in its wholesale business, where revenues were down 54% in the nine weeks to 31 December 2022 compared to a year earlier, Superdry said.
“Whilst we did trade well through November and December, the outlook for the remainder of the year is uncertain and as a result, we are moderating our profit outlook to broadly breakeven,” said Superdry chief executive Julian Dunkerton in a trading update.
“We don’t expect market conditions to become easier any time soon, but with a new financing package in place and the brand in great health, we approach the year ahead with optimism,” Dunkerton added.
Total group revenues in the nine weeks to 31 December grew by 4.5% compared to the same period a year earlier, while for the 35 weeks to the end of 2022, revenue was up 3.9%.
Wholesale revenues weighed on performance, however, down 18% in the year-to-date, “driven by the impact of shipment timing” and a Covid-related lag in confidence, the company said.
As of the half-year to 29 October 2022, Superdy's net debt stood at £38mln.