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| Superdry warns worse to come as profits plunge | Superdry warns worse to come as profits plunge |
| (about 1 hour later) | |
| Superdry, best known for its coats and hoodies, has warned of weaker than expected profits, saying shoppers have not bought extra winter layers this year. | |
| It now expects annual profits of between £55m and £70m - analysts had been expecting around £84m. | It now expects annual profits of between £55m and £70m - analysts had been expecting around £84m. |
| Superdry's shares plunged by as much as 30% after the announcement. | |
| The company is considering closing stores as part of a cost cutting drive to save £50m by 2022. | The company is considering closing stores as part of a cost cutting drive to save £50m by 2022. |
| "Superdry had a difficult first half, impacted by unseasonably warm weather across our major markets, a consumer economy that is increasingly discount driven and the issues we are addressing in product mix and range," said Euan Sutherland, Superdry's chief executive officer. | "Superdry had a difficult first half, impacted by unseasonably warm weather across our major markets, a consumer economy that is increasingly discount driven and the issues we are addressing in product mix and range," said Euan Sutherland, Superdry's chief executive officer. |
| Underlying profit before tax almost halved in the first half of the year, to £12.9m. | Underlying profit before tax almost halved in the first half of the year, to £12.9m. |
| The retailer is a third of the way through an 18-month strategy to re-energise the brand which includes introducing childrenswear and 100% organic cotton products. | The retailer is a third of the way through an 18-month strategy to re-energise the brand which includes introducing childrenswear and 100% organic cotton products. |
| Mr Sutherland said the firm's "over-reliance" on jackets and sweatshirts was partly to blame for flagging sales. | Mr Sutherland said the firm's "over-reliance" on jackets and sweatshirts was partly to blame for flagging sales. |
| He will oversee an efficiency drive which will include reviewing the number and size of their stores, and exploring renegotiating rents between now and March 2019. | He will oversee an efficiency drive which will include reviewing the number and size of their stores, and exploring renegotiating rents between now and March 2019. |
| Superdry's shares were down by as much as 30% on Wednesday. They have lost more than 70% of their value this year. | |
| Superdry became popular with teenagers by providing high quality sweatshirts and other casual wear with a Japanese-style branding. However it has been losing ground and was dubbed recently by the Financial Times as a brand "for cool dads". | |
| According to fashion retail analyst, Kate Hardcastle, the brand has saturated the market and has suffered from discount retailers producing copycat versions, | |
| "To stay fashionable and engage with a buyer a brand has to have an air of exclusivity about it," she said. | |
| Superdry's founder Julian Dunkerton left the board in March. Since then he has criticised the retailer's strategy. | |
| He said the company should focus on its core jackets and hoodies and offer a far wider range of variations online: "Superdry is a series of core products - stick with them and tweak them," he said. | |
| As part of its new strategy Superdry has launched a "fast-fashion" range aimed at a "younger, more fashion-driven" customer. The range mimics online retailers in going from design to delivery to consumers in six weeks and is being marketed via social media. |