Superdry shares plummet after super dumb profits forecast mistake
The English retail clothing brand Superdry yesterday issued their second profits warning of the year after getting their sums wrong in a super dumb mistake.
Shares in the holding company SuperGroup plunged 33 per cent yesterday after "arithmetic errors" were blamed for an initial forecast which was incorrect by £7 million.
The clothing label, which has been worn by the likes of David Beckham in the past, had to revise its pre-tax profits for the year to April 29 from £50 million to £43 million instead. The first profits warning had been issued after a new warehouse IT system upgrade left some Superdry stores short of stock.
"Retail sales are in line with expectations, however, the mix of sales through our various channels has impacted margins," the company reassured shareholders yesterday.
"Additionally, we took the decision to increase our operating costs in order to ensure that we had the correct product at the right time in each of our retail channels, and also, to accelerate investment in our management team."
This wasn't enough to appease retail analyst Matthew McEachran, who told Press Association that the error was the latest "calamity" for Superdry.
"We had put faith in the growth story but are placing our estimates and recommendation under review after this latest issue," he said.