SuperGroup, owner of the Superdry brand, has warned that full-year profits will be hit by as much as £9m after warehouse problems.
The retailer suffered a “significant, temporary reduction both in the amount of stock and range of sizes reaching its UK stores” because of glitches in the implementation of a systems upgrade at its Barnwood premises.
Supergroup’s international and wholesale business was not affected and the retailer said most, but not all, of the problems have now been corrected and temporary extra warehouse space has been taken.
The retailer said: “It is anticipated that our distribution capability will have returned to normal levels of operation and have been fully upgraded with additional capability and efficiency in 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 £6m and £9m. Stock levels will also increase by approximately £2m.”
SuperGroup reiterated its faith in future growth prospects.
No comments yet