The share price of the UK-based Superdry PLC (GB:SDRY) tumbled sharply today after the company issued a profit warning in its trading update for FY24. The company attributed the downfall to the dull retail environment and the “unseasonal” warm autumn weather.
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The Superdry share price hit an all-time low of 34.05p and is trading down by 15.61% at the time of writing. Overall, the stock has plummeted by almost 75% year-to-date, reflecting its struggles to boost profitability amid a challenging retail landscape.
Superdry is a global clothing brand known for its high-quality products. The company’s product range also includes footwear, accessories, and cosmetics.
FY24 Trading Update Snapshot: The Struggle Continues
Superdry reported a 13% year-over-year decline in its retail sales, as warm weather impacted both stores and online numbers. The wholesale business experienced a year-on-year decline of 41.1%, as anticipated, due to the closure of the company’s U.S. wholesale operations. The company’s wholesale partners remain cautious over the inventory levels, considering the lower spending levels of customers.
Despite a recent drop in temperatures across the continent, the company’s sales have continued to lag, reflecting a year-on-year decrease of around 7% over the six weeks since its half-year ended. For the full year, the company has warned of lower profits, owing to the weaker sales observed thus far.
On a positive note, the company’s cost efficiency program is progressing well, with the initial £35 million in cost savings anticipated to be achieved within the year.
The company will announce its interim results for FY24 in January 2024.
