SuperGroup warns on £9m profit hit
High street fashion retailer says warehousing problems will continue until next month
By Leo King | Computerworld UK | Published 12:55, 05 October 11
SuperGroup, the owner of the Superdry clothing brand, said on Wednesday that major system upgrade problems will wipe up to £9 million from its annual profits.
The company is upgrading warehouse management systems at its Barnwood site in Gloucestershire, in a bid to improve capacity. But it said today that problems with the migration have led to a “significant” reduction in the amount of stock reaching its UK stores, with many sizes entirely unavailable.
In order to address warehousing requirements in the interim, SuperGroup has commissioned a separate temporary distribution site. It estimated the cost of this and the lost sales at £6 million to £9 million for the year.
“The group has reacted swiftly to resolve the situation,” SuperGroup said in a statement. “Whilst the majority of the system issues have been rectified, some are still ongoing.”
“It is anticipated that our distribution capability will have returned to normal levels of operation and have been fully upgraded with additional capability and efficiency in November.”
The news alarmed SuperGroup investors, who sent the company’s share price into a 29 percent nosedive to 715 pence. In July, SuperGroup had reported an underlying profit of £37.8 million as it worked on a fast expansion programme of stores.
Share:Facebook Twitter Google Plus Stumble Upon Reddit Share This Email this article
Cyber threats are increasing in scale, scope and frequencymore ..
Wants to get ahead of disruptive innovation by putting it in the centre of its businessmore ..
Over-provisioning seen as a 'necessary evil'more ..
The ZenWatch runs Android Wear and is one of several smartwatches expected at IFA in Berlinmore ..
OPINION: where next for the CFO’s big data budget?more ..
Privacy advocates agree individuals need to take responsibility for their own privacymore ..