UK fashion brand Superdry warned today on its full-year profit after sales during the peak Christmas period fell short of its expectations due to weaker trading on older product.
It said underlying pretax profit for the year to April would be in the range of zero to £10m.
Analysts had forecast pretax profit of £40.5m, according to Refinitiv data, broadly in line with the previous year.
Superdry's revenue fell 15.8% in the 10 weeks to January 4, it said, as sales of the brand's sweatshirts, hoodies and jackets were hit by "unprecedented levels of promotion" by rivals and by subdued trading after Christmas.
Co-founder Julian Dunkerton, who returned to lead the group after a boardroom coup in April, has reduced promotions in a bid to increase full-priced sales.
He said Superdry halved the proportion of discounted sales over Christmas, benefiting both its margins and the brand.
"However this adversely affected our sales during the peak trading period given the level of promotional activity in the market," he said.
"Despite this, our disciplined plan to reinvigorate the brand and return Superdry to sustainable long-term growth is on track," he added.
