Superdry shares (LON:SDRY) fell almost 30% on Monday, after the company issued a profit warning.
The clothing retailer blamed ‘unseasonably hot weather conditions in the UK, continental Europe and the USA’ for the disappointing sales.
Moreover, an additional bout of warmer weather in October has also affected sales of jumpers and jackets.
Superdry also said that it would be also affected by £8 million in additional foreign exchange costs.
Superdry chief executive officer Euan Sutherland said: “Superdry is a strong brand with significant growth opportunities, backed by robust operational capabilities, but we are not immune to the challenges presented by this extraordinary period of unseasonably hot weather. We are well prepared for peak trading, but the second half of financial year 2019 presents both risks and opportunities.
“We continue to focus on delivering efficiencies and cost savings to meet the current challenges and have confidence in our strategy for growth and so are accelerating investments in our future.
“There are significant opportunities ahead for Superdry in terms of geographical market expansion, category extensions and growth and the ability to leverage its multi-channel operating model in a digital world to deliver to customers in whichever way suits them best.”
Superdry’s profit warning follow news that another high street retailer has collapsed.
Last Thursday, Coast announced the closure of its stores amid persistently difficult trading conditions.
However, in a last-minute deal, Karen Millen partially rescued the retailer to allow trading to continue.
PriceWaterhouseCoopers is set to handle the administration process.
Superdry is a branded clothing company that started in Cheltenham.
It is listed on the London Stock Exchange and is part of the FTSE-250 Index.
Shares in the company are currently trading -20.49% as of 10:22AM (GMT).
