Clothing retailer with store in Nottinghamshire considering closing shops

Clothing retailer Superdry - which has a store in Nottinghamshire - has warned it may close shops after announcing lower than expected profits.

Wednesday, 12th December 2018, 12:29 pm
Updated Wednesday, 12th December 2018, 12:35 pm
The clothing retailer is considering closing stores

The company said the unseasonably warm weather in November and December has left sales "under pressure" and that it expected the underlying profit before tax would be in the range of £55m to £70m, short of the £84 million analysts had been predicting.

In a statement issued today, it said struggling sales had "resulted in an adverse profit impact of around £11m in November." It added that it expected a potentially similar profit impact in December if trading conditions did not improve.

An efficiency programme aimed at saving at least £50 million has been announced by the company, which is looking at closing stores, as well as relocating and renegotiating rent.

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The clothing retailer is considering closing stores

Superdry currently has a store in Nottingham, and another at the East Midlands Designer Outlet.

Euan Sutherland, Superdry Chief Executive Officer, 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.

"In the spring of this year we started an 18-month product innovation and diversification programme. This will increase choice for consumers around the world and address the current over-reliance on jackets and sweats. We are accelerating into new categories and are particularly excited by the upcoming launch of Superdry Kids. At the same time we are evolving the brand through targeted investment. In everything we do we will build on Superdry's heritage of offering exceptional quality and design detail at outstanding value.

"Superdry is a strong brand and has strong operational capabilities. We are focused on an intensified transformation programme to reset the business and address the legacy issues we face, particularly 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. We are confident that our transformation programme combined with the underlying operational strengths of the business will deliver a return to higher levels of growth and profitability while realising geographic expansion opportunities and leveraging our multi-channel operating model to serve customers in whichever way suits them best."