Suddenly, following an unexpectedly poor fourth quarter, the future for fashion chain Superdry (SDRY) is looking less bright. The group cited lower sales across its stores, while a growing wholesale operation is causing wider margin dilution. Overall, gross margins are thought to have contracted by around 200 basis points during the year, exacerbated by planned inventory reduction and clearance activities.
IC TIP:
Hold
at
1166p
Strong online sales pushed brand revenues up by more than a fifth over the past financial year, but unexpected disruption from the recent snow and a cooler start to the spring/summer season has delayed shoppers' purchases.
