Superdry owner Supergroup issues profit warning

The company behind the Superdry fashion chain has issued its second profits warning this year.

Supergroup expects pre-tax profit for the year to 29 April to be £43m.

In February, it warned that profits would be at the low end of its forecast of £50m to £54m, after a disappointing sales in January.

This time Supergroup blamed an accounting error. It also said the some sales would have to be moved into the financial year ending in 2013.

The accounting problem was blamed on an "arithmetic error", worth £2.5m, concerning Supergroup's forecast for the wholesale business.

There was also a £2m adjustment to wholesale sales, which are now expected to be moved into the 2012-13 financial year. Supergroup said that there was confusion in the way stock was accounted for at the end of the financial year.

Other costs of £2m were incurred in delivering products and building-up the management team.

In February, chief executive Julian Dunkerton said rival retailers had been making the deepest discounts he had ever seen.

But he thought that profit margins would rise this year, partly because cotton prices were likely to fall.