- Robyn Turk |
The heatwave experienced by parts of the United States and Europe this past summer had a wider reaching impact than previously estimated. Superdry PLC has reported to The Wall Street Journal that the hotter summer hit sales of its jackets and sweat apparel. While the total loss is estimated at 13.15 million dollars, Superdry has shared that it believes full-year profits won’t drop too much. However, Superdry’s investors are not as confident, after the group’s shares dropped by 20 percent. Some investors have sold shares, which has sent Superdry’s stock to reach its lowest point since early 2015.
Superdry relies heavily on winter wear, as its heavier jacket items perform best with consumers and factor into 45 percent of its annual sales, and summer months are typically a point of struggle for the brand. However, additional foreign exchange costs also contributed to 8 million pounds of Superdry’s losses, according to BBC.
Euan Sutherland, chief executive of Superdry, said in a statement, “Superdry is a strong brand with significant growth opportunities, backed by robust operational capabilities, but we are not immune to the challenges presented by this extraordinary period of unseasonably hot weather.”
The experience has also inspired the brand to expand its offerings into a more extensive warm-weather line, including sports products, dresses and skirts.