With an unusually warm weather hitting sales of its autumn/winter collection, and consumers’ curbing expenses on fashion, UK-based fashion retailer Superdry expects its profit to dip this year.
A manufacturer of jackets and clothing inspired by American vintage styles and Japanese-inspired graphics, Superdry tried to raise funds and control costs by limiting its expenses on digital marketing and existing wholesale business in the US.
However, its business continues to remain low. For the six months ended October, 28, the brand’s retail sales declined by 13 per cent while wholesale sales fell by 41.1 per cent.
Currently, the brand’s sales are down by about 7 per cent on a like-for-like basis.
According to the British Retail Consortium, the brand’s retail sales in the UK remained tepid in November despite Black Friday deals.
Its revenues are expected to remain weaker than market expectations despite cooler, climatic conditions boosting sales, says Clive Black, Analyst, Shore Capital.
