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Superdry burnt again by warmer weather

Superdry said it expects to take another hit on profits in December if trading conditions do not improve
Superdry said it expects to take another hit on profits in December if trading conditions do not improve

Superdry's sales continued to suffer from unusually warm weather during the UK fashion chain's two biggest trading months in November and December.

This prompted it to warn today of an £11m hit to profit last month. 

The company, which has been striving to reduce its reliance on warm-weather clothing, said it had been going through a "difficult trading period",

It said it expects to take another hit on profits in December if trading conditions do not improve. 

Superdry also forecast that its underlying profit before tax for the year could almost half compared to 2017. 

The company's full-year profits tend to be heavily influenced by its performance in the second half, due to the popularity of its cold-weather jackets and sweaters, which account for 55-60% of autumn/winter sales. 

Superdry shares have been falling all year, but they sank in October after it warned that full year profit would fall short of market expectations as Britain recorded its hottest summer in living memory. 

The FTSE 250 company joins a growing list of European retailers, including the suit company Moss Bros Group and online fashion vendor Zalando, that have financially suffered because of the unusually warm weather. 

Superdry has been spending heavily to diversify its product range and reduce its reliance on winter clothing. 

The moves however have roughly halved its underlying operating margins to 3.6% this year compared to last, with selling and distribution costs rising by 8.4% for the first-half ended October 27.