Superdry sees profit hit in 2019 over weather

Superdry PLC (SDRY.LN) said Wednesday that sales have remained under pressure through November and into December, which is expected to drag on profit for fiscal 2019.

The fashion brand said it has been hit by continued unseasonably warm weather across key markets, which isn’t negative for the group given its reliance on cold weather-related products. This has led to a profit reduction of 11 million pounds ($13.8 million) for November and Superdry expects a potentially similar impact for December if conditions don’t improve, it said.

Superdry anticipates underlying pretax profit of between GBP55 million and GBP70 million for fiscal 2019 as a whole. This compares with an consensus forecast of GBP83.3 million, based on the estimates of seven analysts polled by FactSet.

For the six months ended Oct. 27, Superdry’s pretax profit was GBP26.4 million compared with GBP9.1 million in the year-earlier period, the fashion brand said.

Revenue for the first half rose 3.1% to GBP414.6 million from GBP402.0 million a year before, the company said.

"Superdry had a difficult first half, impacted by unseasonably warm weather across our major markets, a consumer economy that is increasingly discount driven and the issues we are addressing in product mix and range," Chief Executive Euan Sutherland said.

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