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Superdry blames weather and forex for profit warning

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Superdry blames weather and forex for profit warning
FILE PHOTO: People stand outside a Superdry store in central London, Britain July 9, 2015. REUTERS/Paul Hackett   -   Copyright  Paul Hackett(Reuters)
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LONDON (Reuters) – British fashion group Superdry <SDRY.L> warned 2018-19 profit could be as much as 17 percent below current expectations, blaming a hit to sales from unseasonably hot weather and rising foreign exchange costs.

The firm said on Monday weak demand for autumn/winter product in the UK, continental Europe and the east coast of the United States, particularly for sweat shirts and jackets, combined with challenges facing some of the trading partners it supplies, would adversely impact 2018-19 profit by around 10 million pounds.

Superdry also said foreign exchange hedging mechanisms had not provided the same degree of protection as expected. This would lead to around 8 million pounds in additional foreign exchange costs.

Prior to Monday update analysts’ average forecast for 2018-19 pretax profit was 109.5 million pounds, according to Refinitiv data, up from 97 million pounds made in 2017-18.

Superdry forecast “mid-single digit” global brand revenue growth for its first half period and “low to mid-single digit” statutory revenue growth.

Shares in the firm, down 47 percent so far this year, closed Friday at 1,015 pence, valuing the business at 832 million pounds.

(Reporting by James Davey; editing by Sarah Young)

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