Superdry PLC (LSE:SDRY) has warned that full-year profits will be hit by the “challenging” trading environment and the warm autumn weather.
The branded goods retailer, famous for its hoodies, said trading performance has been “significantly below” management expectations and profit for the year is expected to reflect this weaker trading.
Superdry said trading in the 26 weeks to 28 October was characterised by a challenging consumer retail market and the abnormally mild autumn which resulted in a delayed uptake of the autumn collection.
Retail sales fell 13.1% from the year before while wholesale sales slumped 41.1%, although this was, to some extent, expected due to the company's decision to exit its US wholesale operation.
Despite some more encouraging trends, sales in the six weeks since the half-year are still down around 7% on a like-for-like basis.
Superdry said it had made progress on its cost-savings programme and remains on track to make £35 million of savings within the year.
It said its inventory reduction programme is on track as clearance of aged stock has continued.