Tentative hopes of a recovery as Superdry (SDRY) have been dealt another blow, after the clothing brand warned on profits following poor trading over Christmas, setting off a 15 per cent drop in the share price
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Going into the festive period, the group’s trading had looked in fairly good shape, with its strongest ever Black Friday, but “unprecedented” levels of promotional activity from rivals made it difficult to shift stock. Combined with shortages in some of its more popular products – driven by the need to reduce the group’s inventories – this severely impacted profits, and management now expects underlying pre-tax profits to come in at £10m or lower for the full year, compared with broker Peel Hunt's previous estimate of £18.9m.
