Warehouse error leaves SuperGroup with £9m hole in profits
A WAREHOUSE system blunder which left the owner of the Superdry fashion label with stock shortages will cost the firm nearly £9m in lost profits.
SuperGroup opened temporary warehousing after a new management system - introduced to keep up with soaring demand for the company's products - suffered teething problems, leaving many stores with incorrect stock and incomplete size ranges on key products.
It expects the profits impact from lost sales alone will be around £5.8m in the year to May 1, but SuperGroup added today that the issues were resolved in time for Christmas trading.
The Cheltenham-based firm reported underlying profits of £13m for the six months to October 30, a fall of £500,000 after booking £4m of the £8.8m stock supply hit in results today.
Half-year revenues were up 51pc to £136.1m after strong trading at the division responsible for supplying franchisees and independent retailers.
It also added 12 new standalone stores in the half-year, taking its portfolio to 72, with another eight to come by the end of April.
Shares in the fashion group slumped by more than a quarter in October after it revealed the stock supply issues - the second such warning this year. In May, the group revealed it did not get its summer ranges into shops in time to take advantage of the spring heatwave.
The stock was more than 8pc higher today as analysts said the results were broadly in line with forecasts and recent guidance that the supply issues will cost the company between £6m and £9m.