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Superdry PLC on Friday said it withdrew its profit guidance, citing the cost of living crisis in the UK and poor weather, despite anticipating a rise in revenue. Superdry shares fell 17% to 88.88 pence each on Friday morning in London. The Cheltenham, England-based clothing retailer, said it withdraw its existing guidance of ‘broadly breakeven’ adjusted pretax profit in financial 2023 ending April 30, compared to a profit of £21.9 million in financial 2022. ‘Retail sales in February and March, whilst showing significant year-on-year like-for-like growth, have not met our expectations. This can partly be attributed to factors outside the company’s control, including the cost-of-living crisis having a significant impact on spending and footfall, and poor weather resulting in less demand for our new spring-summer collection. These trends are consistent across both the UK and Europe. Wholesale performance continues to lag the rest of the group, although we are making progress in working with our partners to support their recovery,’ the company explained. Meanwhile, Superdry expects revenue of between £615 million and £635 million, up at least 0.9% from £609.6 million a year prior. Founder & Chief Executive Officer Julian Dunkerton said: ‘While we continue to deliver like-for-like growth in retail sales, we need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base.’ The company added it is considering issuing shares to strengthen its balance sheet. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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