Vogue chain Superdry has warned that its earnings would be wiped out after gross sales fell sharply over Christmas.
The firm, which has been attempting to sell more garments at stout tag, said it had been hit by “unheard of levels of promotional issue” by opponents.
Superdry, which saw co-founder Julian Dunkerton return to handbook the company final yr, moreover blamed unhappy gross sales of oldschool designs by the old management.
Revenues on the retailer fell 15.8% over the 10 weeks to 4 January.
For this reason, the company said it now anticipated stout-yr earnings to be between zero and £10m.
The company has experienced a turbulent 12 months.
In April final yr, Mr Dunkerton returned to the firm following a lengthy marketing campaign against the old management, who – he argued – were following a “mistaken” technique.
Since his return, Mr Dunkerton has been attempting to point of interest on stout-tag gross sales and reducing promotions, but this meant the chain suffered over the distinguished Christmas buying and selling duration.
Mr Dunkerton said: “All americans at Superdry continues to work intensively to scream the turnaround of the alternate. While now we enjoy continually said this will take care of shut time, we continue to construct progress in imposing our technique.”
“A key ingredient of here is to point of interest on and return to stout-tag gross sales and decrease promotional issue, and we halved the proportion of discounted gross sales over our high buying and selling duration, benefiting each and every our margins and the Superdry model.
“On the replacement hand, this adversely affected our gross sales for the length of the end buying and selling duration, given the stage of promotional issue available within the market. Despite this, our disciplined opinion to reinvigorate the logo and return Superdry to sustainable lengthy-term enhance is heading within the appropriate path.”