Supergroup, the parent company of the Superdry fashion chain is expected to reduce it's profit forecast for 2012 after it saw its shares fall 17%. The company reluctantly announced sales in January were disappointing and that profits forthe financial year would be at the low end of its forecast.
Chief executive Julian Dunkerton said rival retailers had been making the deepest discounts he had ever seen.
The Cheltenham-based firm expects to make £50m to £54m for the full-year.
However, Mr Dunkerton is confident that profits will pick up. "As the new product drops, normal service will resume," he said.
"In the next 12 months, we're going to see better margins from better sourcing and cotton prices coming down."
According to Mr Dunkerton, the brand continues to be supported by celebrities. He said that Pippa Middleton was recently seen wearing a pair of Superdry jeans.
Superdry, which operates 43 UK standalone stores, was founded in 2003. The brands aesthetic fuses design influences from Japanese graphics and vintage Americana, with the values of British tailoring.
Image: Zac Efron in Superdry