Supergroup temporary reduction in stock

Supergroup, owner of fashion brand Superdry,

has reported that issues relating to an upgrade of its warehouse management system has caused a “significant, temporary reduction” in the amount of stock and sizes reaching its stores.

The total lost sales and costs incurred could see the retailer face a strong dip in profitability; somewhere estimated between £6-9million. Whilst most of the issues have been rectified, temporary warehouse facilities have been commissioned to address capacity requirements and the group expects its distribution capability to return to normal levels of operation in November.

The company said in a statement issued today, ”Whilst the issues outlined above are an unwelcome temporary set-back, these changes to our warehouse management systems are vital in supporting the significant growth we continue to experience in the business. Our strategy is unchanged and we have a high level of confidence in the Group's future growth prospects."