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Published
Nov 10, 2011
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SuperGroup profit hit by warehouse issue

By
Reuters
Published
Nov 10, 2011

LONDON - Fast-growing British youth fashion retailer SuperGroup said full-year profit would be hit by problems with a new warehouse management system that has left its shops short of its trademark T-shirts, hooded tops and check shirts.

SuperGroup
Superdry campaign

In August the firm implemented an upgrade programme to its warehouse management systems to increase capacity and efficiency at its Barnwood site to meet future growth in demand.

"Once live, the business encountered some short-term issues in the transition which has caused a significant, temporary reduction both in the amount of stock and range of sizes reaching its UK stores," SuperGroup said on Wednesday.

The firm, which had to commission temporary warehouse facilities, said it did not expect its distribution capability to return to normal levels until November.

"We estimate that the total cost of this isolated event, including the additional temporary warehousing capability and resulting lost sales during the period, will impact the current year's profitability by between 6-9 million pounds ($9.2-$13.9 million)," it said.

SuperGroup said that during this period it continued to see "ongoing appeal" for its Superdry brand in the UK, internationally and online.

It added that its UK store opening programme was likely to be at the upper end of guidance for the second-quarter, while international openings and growth plans remained on track.

"Our strategy is unchanged and we have a high level of confidence in the group's future growth prospects," it said.

Shares in the firm, which floated at 500 pence 19 months ago, closed Tuesday at 1,005 pence, valuing the business at about 823 million pounds.

($1 = 0.649 British Pounds)

(Reporting by James Davey, editing by Kate Holton)

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