Superdry firm Supergroup faces £9m profit hit

Supergroup

Last Updated at 24 Apr 2014, 11:36 ET *Chart shows local time Supergroup intraday chart
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Shares in clothing firm Supergroup have fallen by a quarter after it said problems at a distribution warehouse would hit profits by between £6m and £9m.

The company behind the Superdry brand said the problems had seen a "reduction both in the amount of stock and range of sizes reaching its UK stores".

The firm said the problems centred on an upgrade to its Gloucester warehouse.

Supergroup's shares ended the day 30% lower at £7.07.

In a management statement, the firm said it estimated "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".

Supergroup, which is based in Cheltenham, also said its stock levels would increase by £2m.

Analysts believe the problem will add to a range of difficult factors facing the firm, including the tough consumer climate, a weak August and the unseasonably warm September weather discouraging the purchase of autumn clothes.

In July, Supergroup said that profits for the year to May had jumped by 110% to £47.3m.

Supergroup floated its shares on the London Stock Exchange in March 2010, at a price of £5 per share.

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