By Laura McGuire
Superdry blamed unseasonable weather for a 13 per cent slump in retail sales year-on-year, as the struggling fashion retailer continues to trade below management expectations.
Wholesale earnings were down 41.1 per cent year-on year, which was due to the decision to exit its US wholesale operation. It was also driven by “timing differences and the underperformance of the channel”,a full year trading update published this morning said.
Julian Dunkerton, founder and chief executive of Superdry said: “The un-seasonal weather through the early autumn led to a delayed uptake of our Autumn/Winter range and this impacted sales in the first half of the year.
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“Whilst we have seen modest signs of improvement through the recent spell of colder weather, current trading has remained challenging, and this is reflected in the weaker than expected business performance.”
In the last year, Superdry has been trying to keep its head above water and has introduced a number of cost cutting measures.
Back in October, it signed a joint venture with Reliance Brands Holding UK Ltd (RBUK) for the sale of its intellectual property in South Asia, in its latest bid to boost funds.
It mirrored an agreement announced by Superdry in March to sell the intellectual property of its Asia Pacific offering to South Korean retail group Cowell Fashion Company for $50m (£40m).
Dunkerton added: “The operational progress we have made in the first half has been more encouraging with the IP sale for the South Asian region and strong progress on our cost efficiency programme.”
