Superdry shares have fallen more than 20% after the retailer warned of a £10m hit to profits because the recent heatwave hurt sales of winter clothes.
"Unseasonably hot weather conditions in the UK, Continental Europe and on the East Coast of the USA," were to blame, the company said.
The problem has continued into October, with sales of jumpers and jackets particularly badly hit, Superdry said. The company also said it faced £8m in additional foreign exchange costs.
"Superdry is a strong brand with significant growth opportunities... but we are not immune to the challenges presented by this extraordinary period of unseasonably hot weather," said chief executive Euan Sutherland.
In August, the British Retail Consortium warned that if the warm weather continued into October it could cost non-food retailers more than £300m of autumn and winter sales.
Superdry makes about 70-75% of profits in the second half of the year. The company is, however, five months into an 18-month plan to diversify its range to reduce reliance on winter sales. The group also pointed to the turbulent retail environment, noting "well-publicised challenges" faced by some of its trading partners.
One of these partners is Zalando, a huge European online-only fashion retailer. Last month the company issued its second profit warning, blaming the "long and hot summer" for a fall in sales.
Other suppliers to House of Fraser, such as Ted Baker and Mulberry, have already flagged the negative impact on profits which resulted from the administration.
Retail analyst Nick Bubb said that, given some other retailers have warned about the warm autumn weather, the Superdry statement could have been expected. But he described the £8m hit due to exchange rate factors as "mysterious", and said details about future profit and sales guidance were sketchy.
Superdry will issue its scheduled first-half results announcement on 8 November.
RPA Perspective Away from its summer troubles, Superdry is expanding its presence in China with the opening of an official flagship store on JD.com, China’s largest retailer.
Superdry is now offering a wide range of products on JD.com, including apparel, accessories and footwear, reaching over 300 million consumers. To kick off the new Autumn-Winter season, Superdry has launched a brand campaign called #Super Zao# to celebrate the power of millennials and encourage young people to express their individuality without restrictions.
A special micro-film for the #Super Zao# campaign featuring Chinese actor and singer Timmy Xu, Superdry’s brand ambassador, has already gone viral. JD and Superdry have also joined forces to launch a JD Super Fans Day which offers a highly unique brand experience for Chinese fans on JD.com through a combination of online and offline activities.
“JD.com is one of the world’s most innovative retailers, providing a customizable, best-in-class experience that is shaping the future of shopping. We’re excited to be working with them to create a unique, interactive experience for shoppers to discover the exciting world of our brand,” said Eric Hu, General Manager of Superdry China. “Fusing iconic vintage Americana and high-impact Asian graphic imagery with a British twist, Superdry is a global digital brand designed for attitude not age. Our products, like our customers, are not one-dimensional. Each piece allows you to wear it in your own way and tell your own story.”
Sportswear, streetwear and menswear fashion brands have proven enormously popular on JD.com, with international brands including Boy London and Harley-Davidson joining JD this month. JD launched its menswear festival on September 25, during which sales doubled from the same day last year, with Calvin Klein, HAZZYS, Lacoste, Levi’s, and Tommy Hilfiger performing particularly well.
On September 11, JD kicked off a Super Category Day for sports products that showcased the surging interest among Chinese consumers for athletic goods. Sales for the category that day exceeded 10 million Chinese yuan in the first 2.5 minutes of the promotion. Sales for the category over the entire day increased 600% as compared with a similar promotion last September.
