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.
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.
