SuperGroup posts 30% drop in profits

Superdry-owner SuperGroup suffered a 30% drop in pre-tax profits, warning of lower gross margins after unseasonable autumn weather weighed heavily on sales in the six month period ended 25 October.The group said that sales fell 4.1% and pre-tax profits slipped to £12.5m from £17.9m in the same period a year ago, despite an 8.4% increase in total revenues to £208.2m.Prior to a disappointing autumn season, the company also experienced disappointing sales in the summer due to a "shortage of key summer lines and an under-performance in womenswear", it said.Moreover, the business has reportedly suffered from "widely publicised external factors" in the first half of the year, which spanned May to October. As a result, the group has been reviewing every aspect of the business and has already identified some operations that could be improved.The fashion retailer outlined expectations that its gross margin will remain flat on the year, having previously forecast an increase of 25 basis points.The group said margins were adversely affected by retail clearance activity. However, SuperGroup maintained that full-year profits are expected to reach around £60m to £65m.In October, SuperGroup revised down its full year profit guidance to between £60m and £65m from an earlier estimate of between £67.1m and £72.3m due to the mild weather.As of 8:53 on Thursday, the group's share price fell 2.56% to 808.74p per share.