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SuperGroup's Barnwood site facing major problem
07
Oct '11
SuperGroup Plc, owner of the Superdry brand and one of the fastest growing international branded clothing companies, announces the following update.

At the end of August SuperGroup implemented an upgrade programme to its warehouse management systems to increase capacity and efficiency at its Barnwood site to meet future growth in demand. Once live, the business encountered some short-term issues in the transition which has caused a significant, temporary reduction both in the amount of stock and range of sizes reaching its UK stores.

SuperGroup's international and wholesale operations are not affected.

The Group has reacted swiftly to resolve the situation. Whilst the majority of the system issues have been rectified, some are still ongoing. Temporary warehouse facilities have been commissioned to address capacity requirements. 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.

We estimate that the total cost of this isolated event, including the additional temporary warehousing capability and resulting lost sales during the period, will impact the current year's profitability by between £6-9 million. Stock levels will also increase by c.£2 million.

During this period we continue to see ongoing appeal for the Superdry brand in the UK, internationally and online. Our new UK store opening programme is likely to be at the upper end of Q2 guidance with eight new stores opened since the beginning of our financial year. Our international opening programme and growth plans remain on track.

Whilst the issues outlined above are an unwelcome temporary set-back, these changes to our warehouse management systems are vital in supporting the significant growth we continue to experience in the business. Our strategy is unchanged and we have a high level of confidence in the Group's future growth prospects.

SuperGroup Plc


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