Superdry in profit warning after heatwave hits sales

Superdry store in Regents Street.
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Superdry has warned profits will take a £10m hit because late spells of hot weather hurt sales of winter clothes.

“Unseasonably hot weather conditions in the UK, Continental Europe and on the East Coast of the USA,” were to blame, Superdry said in a statement.

The problem has continued into October, with sales of jumpers and jackets particularly badly hit, Superdry said.

The fashion brand said it also faced £8m in additional foreign exchange costs.

“Superdry is a strong brand with significant growth opportunities… but we are not immune to the challenges presented by this extraordinary period of unseasonably hot weather,” said chief executive Euan Sutherland.

In August, the British Retail Consortium warned that if the warm weather continued into October it could cost non-food retailers more than £300m of autumn and winter sales.

Superdry makes about 70-75% of profits in the second half of the year. The company is, however, five months into an 18-month plan to diversify its range to reduce reliance on winter sales.

The group also pointed to the turbulent retail environment, noting “well-publicised challenges” faced by some of its trading partners.

Superdry clothes are sold in House of Fraser department stores, which has seen a big fall in sales and is closing some stores.

Other suppliers to the chain, such as Ted Baker and Mulberry, have already flagged the negative impact on profits which resulted from the administration.

Superdry will issue its scheduled first-half profits announcement on 8 November.