Shares fell with the group behind fashion brand Superdry after it posted a fall in profits despite an increase of revenue of 20 per cent in its interim results, with foreign exchange hedging having dented margins.
Superdry turned over £402m in the 10 weeks to January 6 including a £12.0m benefit from foreign exchange.
Wholesale revenues increased by 34.1 per cent to £159.3m with retail revenues up 12.8 per cent to £242.7m, including like-for-like growth of 6.3 per cent.
However its pre-tax profit slumped 28 per cent to £9.1m following a £15.9m hit on its foreign exchange hedging strategy.
Ecommerce values soared by 31.6 per cent of participation while store revenues more than held their own at 7.6 per cent growth, accounting for some £181.5m in revenue.
The strong figures resulted in underlying basic earnings per share of 25.8p with the interim dividend increasing by 19.2 per cent to 9.3p a share.
Euan Sutherland, Superdry’s chief executive officer, said: “Superdry has further strengthened its position as a Global Digital Brand obsessed with quality and design.
“Having traded through our peak trading period, the Board remains confident in delivering full year underlying profit before income tax in line with analyst expectations and in the quality of the sustainable financial performance we can deliver.”
The group used the results announcement to unveil its SuperdrySounds initiative, a new drive to find the best emerging music talent from around the world - and put them on stage at international music festivals this summer.
Analyst Peel Hunt reaffirmed its buy investment rating on Superdry following the results.