Superdry shares plummet on trading warning

Shares in Superdry have plunged after the clothing brand warned that its annual performance will be weaker than previously expected.
Poor sales and disagreementsPoor sales and disagreements
Poor sales and disagreements

Underlying profit before tax fell 49% to £12.9 million in the 26 weeks to October 27.

The company now expects profits in the current financial year to be somewhere between £55m and £70m. Analysts had predicted around £84m.

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Revenue was up 6.4% to £831.8m, though this was driven by online sales as store revenue decreased.

Shares in Superdry fell 31% to under 400p in early trading.

It comes amid a boardroom bust-up between the current management and Superdry’s co-founder, Julian Dunkerton, who is trying to stage a comeback at the company.

Superdry chairman Peter Bamford said on a call with journalists on Wednesday that the board believes Mr Dunkerton’s views on strategy “have not evolved with the needs of what is now a multi-channel, international and increasingly digital retailer”.

The group is to complete a review of its store portfolio by the end of March next year and will consider closures, downsizing, relocation or renegotiation of rents as it looks to cut costs.

The company blamed unseasonably warm weather for the poor performance of the first half, given its reliance on sales of jackets and winter clothing.