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FTSE 250 fashion firm Superdry (LON:SDRY) saw its shares drop by 19.11% to 821p (at 11:00 BST) after it warned that it was facing a number of difficulties that will lead to a drop of around £10 million in 2019 profits. The company said that continued warmer weather in Europe and North America had led to lower sales of its Autumn and Winter ranges, including sweats and jackets which make up around 45% of annual sales. Additionally, the steps taken to protect Superdry from currency risk have not been as effective as had been hoped.
Management believe that Superdry will still post mid single-digit growth in global brand revenues, but sales in their own shops are likely to be lower than in the prior year. Chief executive Euan Sutherland commented: “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. We are well prepared for peak trading, but the second half of financial year 2019 presents both risks and opportunities.”