UK’s Superdry faces weeks-long supply delays at wholesale business

(Reuters) – British fashion retailer Superdry said on Thursday it was facing delays of up to six weeks in despatching stock at its wholesale business ahead of the crucial holiday season due to global supply chain issues.

However, the company, best known for its sweatshirts, hoodies and jackets, said there were no significant availability issues at its retail business.

The impact of the supply chain delays has been greater on the wholesale business, with despatches 4 to 6 weeks behind plan due to intake delays, Superdry said, while adding it does not foresee a risk to the season.

The company also backed its full-year outlook.

Retailers have been navigating stagnant supply chains that have struggled to cope with rising demand as economies reopen, at a time the pandemic has caused widespread staff shortages. Britain is also adjusting to fewer EU workers due to Brexit.

Clothing retailer Next, which also sells Superdry clothes in its Label marketplace, on Wednesday cautioned sales would slow in the crucial holiday season amid supply chain issues.

Superdry said the pandemic continues to impact its physical stores and resulted in a 25.3% drop in revenue for the six months ended Oct. 23, compared with pre-COVID-19 levels.

“Superdry is recovering well from the disruption of the pandemic and I am really pleased with the start to the Autumn/Winter 2021 season, despite the ongoing disruption around the world,” Chief Executive Officer Julian Dunkerton said.

The recent performance raises confidence in the full-year outlook, Dunkerton, who has a more than 20% stake in the company, said.

(Reporting by Chris Peters in Bengaluru; Editing by Shounak Dasgupta)