Superdry, finest recognized for its coats and hoodies, has warned of weaker than anticipated earnings, saying clients haven’t purchased additional winter layers this 12 months.
It now expects annual earnings of between £55m and £70m – analysts had been anticipating round £84m.
Superdry blamed heat climate, shopper uncertainty and a scarcity of innovation.
The corporate is contemplating closing shops as a part of a value slicing drive to avoid wasting £50m by 2022.
“Superdry had a troublesome first half, impacted by unseasonably heat climate throughout our main markets, a shopper financial system that’s more and more low cost pushed and the problems we’re addressing in product combine and vary,” stated Euan Sutherland, Superdry’s chief government officer.
Underlying revenue earlier than tax virtually halved within the first half of the 12 months, to £12.9m.
The retailer is a 3rd of the way in which by an 18-month technique to re-energise the model which incorporates introducing childrenswear and 100% natural cotton merchandise.
Mr Sutherland stated the agency’s “over-reliance” on jackets and sweatshirts was partly accountable for flagging gross sales.
He’ll oversee an effectivity drive which can embody reviewing the quantity and dimension of their shops, and exploring renegotiating rents between now and March 2019.
Superdry’s shares fell by 20% on Wednesday morning.