Superdry, a fashion retailer known for its cozy coats and hoodies, faced a tough time as warmer-than-usual weather affected its sales. They warned that their profits would be lower than expected because fewer people bought their autumn and winter clothes due to the mild autumn.
To improve profits, Superdry has been trying to save money by cutting expenses, selling excess stock, and getting rid of some assets. Despite these efforts, their revenue dropped by 13% over six months until October, causing their share price to hit a record low before bouncing back a bit.
The company mentioned that the warm weather globally impacted their online sales and led to a decrease in spending on digital advertising. They also saw a big fall in wholesale sales, partly because they stopped operations in the US.
Although the recent colder weather boosted sales a bit, Superdry still reported a 7% decline in sales in the six weeks after October. The company admitted that their trading performance was worse than they anticipated, affecting their expected profits for the year.
Superdry’s CEO, Julian Dunkerton, mentioned they’ve seen some improvement with the colder weather but acknowledged that their sales are still not meeting expectations. They’ve been working on cutting costs, including laying off employees at their headquarters and selling their brand rights in certain countries in the Asia Pacific region.
Because of this unexpected drop in sales due to the warm weather, Superdry’s share prices fell to an all-time low of 28.2p, which is a huge decrease of around 32.5%.
