• Group Q2 sales up 42% to GBP82m
  • Retail sales up 23% to GBP40m
  • Wholesale revenues up 67% to GBP42m

Disruption to its UK warehouse operations will cost Superdry brand owner SuperGroup up to GBP9m (US$14.4m) in lost profits this year, the company has admitted.

Unveiling a second quarter group sales increase of 42%, the UK fashion business said retail sales had risen 23% despite the stock replenishment problems in the three months to 30 October.

It added that progress had been made in resolving the systems and operational issues at its UK distribution centre, resulting in improving sales since the problem was announced on 5 October.

Meanwhile, wholesale revenues were up 67% as SuperGroup continued to expand internationally, opening another 11 Superdry stores in the first half to bring the total to 101.

Another 12 UK stores were opened in the first half, bringing that total to 72, with another four due to open before Christmas and the company’s Regent Street flagship store on track to open before the end of the financial year.

“While this has been a demanding period for SuperGroup logistically, we are well on the road to rectifying the situation and have learned valuable lessons in the process,” said Julian Dunkerton, SuperGroup CEO.

“The broader macro and consumer environment remains uncertain. However, we look forward to the peak season with a growing portfolio of stores both in the UK and internationally, and confidence in the future growth of the business.”