Superdry Plc shares plunged after the fashion retailer cut its profit outlook for the year, blaming its underperforming wholesale business and warning of potential consumer weakness in the months ahead.
The British retailer, known for its logo T-shirts and bright colors, now expects adjusted pretax profit to be flat for the fiscal year ending in April. That compares with a previous forecast for £10 million ($12 million) to £20 million profit.
“We are mindful of the challenges facing the consumer as we head into 2023 and remain very cautious about the potential for a soft spring,” the company said in a statement Friday. The stock fell as much as 19% in early trading and are down more than 40% over the past year.
A lagged recovery after the Covid-19 pandemic along with shipment timing has hurt wholesale performance, the company said. Meanwhile, store revenues were boosted by customers returning to shops during the festive period.
Superdry has been trying to turn around its performance and last month secured a loan with a specialist lender backed by US activist Elliott Investment Management. The shares have fallen more than 30% over the past year. –BLOOMBERG