SuperGroup in £9m profit warning hit

SUPERGROUP yesterday shocked the City by revealing that its full-year profits will be hit by up to £9m after a supply problem at a key warehouse.

The company, best known for its Superdry brand, saw its shares dive almost 30 per cent after the announcement.

It said there had not been enough stock in its UK stores as a result of the supply blow at its warehouse in Gloucester, which was being revamped.

The retailer estimated that its profits would be dented by between £6m and £9m.

It said in a statement: “The total cost of this isolated event, including the additional temporary warehousing capability and resulting lost sales will impact the current year’s profitability by between £6m and £9m.” However, it added that the system was running smoothly now.

In May the firm reported that growth slowed in its fourth quarter as it failed to get summer stock quickly enough into shops for the warm weather.

But in July Supergroup, which is to open a new flagship store on Regent Street, said that profits for the year to May had jumped by 110 per cent to £47.3m.

It floated on the London Stock Exchange in March 2010 at a price of £5 per share.