Superdry plans to step up its transformation programme, which includes launching kidswear and licencing, after announing crumbling profits, down 49% for the 26 weeks to 27 October 2018.
Underlying profits before tax were down to £12.9m for the period, compared to £25.3m in the same period last year
The drop was blamed on “unseasonably warm” weather throughout the year, as well as a weakening, discount-driven market.
The brand cautioned that the negative impact of the warm weather is set to continue into November and December. November profits are expected to take an £11m hit, with similar negative impacts expected in December, while overall profits for the year are anticipated to range between £55m and £70m.
Global brand revenue rose 6.4% to £831.8m for the period, with total group revenues edging up 3.1% to £414.6m.
As a result of the knock to profits, Superdry is set to accelerate its transformation plans. This includes an 18-month innovation and diversification programme on product, including the launch of licencing and kidswear early next year.
A review of Superdry’s store portfolio is also set to be completed by March 2019.
Commenting on the results, chief executive Euan Sutherland said: “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.
“Superdry is responding to its internal challenges as well as a changing world and changing consumers. Our comprehensive transformation will ensure Superdry is well positioned as we optimise our routes to market and make our business more efficient.”
The results come after mounting criticism of the brand’s strategy from founder Julian Dunkerton, who criticised its approach in a note to the City this week, having previously warned that the retailer is “on the wrong path”.