Superdry board fears challenging business environment; shares drop more than 15%

Shares of UK-based Superdry (SDRY.UK) are currently losing more than 15% after the company warned that its full-year earnings will suffer due to a difficult market environment.

The apparel retailer pointed to an "unusually mild autumn" that caused it to delay its AW23 (autumn/winter) collection update. Retail sales fell 13% year-on-year in the six months to October 28, while wholesale sales fell 41%.

"Despite progress on strategic priorities and the ongoing balance sheet recapitalization program, the external environment proved challenging and trading performance was well below management's expectations. Earnings for the year are therefore expected to reflect the weaker trading performance seen to date," - The company warned.

The company's shares are losing nearly 15.5% today and are trading at the lowest levels in the company's history. Source: xStation