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SuperGroup’s shares suffered a blow in October when the retailer warned on full-year profits. The company, which owns the Superdry brand, stated that annual profits could fall as much as 17% due to the warm weather. This year was the hottest Halloween on record and the unusually long summer meant that sales of t-shirts were relatively high, however sales of items that have a higher profit margin like jackets were lower.
SuperGroup was not the only clothing retailer to blame the warm weather for lower profits. Next lowered its full-year outlook only days before SuperGroup warned on its. I wouldn’t be put off by the soft autumn sales — in July the firm revealed a 19% rise in full-year profits.