Superdry issues trading update warning "challenging trading environment"

Superdry has warned of a hit to its full-year profitability for FY24, blaming an "abnormally mild autumn" for delaying outerwear sales and causing a "challenging trading environment".

The company, best known for its logo-emblazoned hoodies and T-shirts, has today issued a trading update for FY24 covering the 26 weeks to 28 October 2023 and an update to current trading covering the 6 weeks to 10 December 2023.

Despite its progress on the cost savings programme and an inventory reduction, a delayed uptake of the AW23 collection, thanks to the "external environment", saw retail sales plummet by 13.1% year on year.

Meanwhile, wholesale was down by 41.1% year on year, which was expected after the company closed its US wholesale operations.

The colder weather seen recently in the UK and Europe, along with Superdry's longstanding strength in outerwear, has led to a pick-up in sales. However, sales in the 6 weeks to 10 December were still down by 7% on a like-for-like basis.

Julian Dunkerton, Founder and Chief Executive Officer, said: "The unseasonal weather through the early autumn led to a delayed uptake of our Autumn/Winter range and this impacted sales in the first half of the year. Whilst we have seen modest signs of improvement through the recent spell of colder weather, current trading has remained challenging, and this is reflected in the weaker-than-expected business performance.

"The operational progress we have made in the first half has been more encouraging with the IP sale for the South Asian region and strong progress on our cost efficiency programme."

The company warns profits for the year are expected to reflect the weaker trading seen to date. A further update will be provided in its interim results in January.