BRITAIN’S Indian summer took its toll on another major retailer when the owner of the Superdry brand revealed profits will be lower than expected.
SuperGroup said the exceptional warm weather in September and October had dented demand for its coats and outerwear, which make up a significant part of its sales.
With its performance also impacted by discounting in the sector, the group expects profits for the year to April will be between £60m and £65m. This is down from the £70m expected in the City and £62m achieved in the previous financial year.
Earlier this week Next knocked £25m from its profits guidance because of the sustained period of mild weather.
SuperGroup said like-for-like sales in its store estate were 4.2 per cent lower in the 13 weeks to October 25, with the performance much tougher in recent weeks.
Wholesale revenues for the period were down 3.7 per cent as retail customers opted to stagger deliveries in the difficult climate. The profits warning represents a tough start to life as chief executive for former Co-op boss Euan Sutherland after he took the helm last week.
Analyst Kate Calvert at Investec said: “Persistent warm weather across the UK & Europe has negatively impacted the retail and wholesale channels for SuperGroup, which is more exposed than most given its higher proportion of outerwear.”