Artemis' Littlewood hit by Supergroup profit warning

Shares in Supergroup have tumbled on the back of a profit warning, which will be a cause of concern for Artemis’ William Littlewood (pictured) who has a holding in the fashion company.

The retail group lost 101p, or 14%, falling to 599p this morning, after the maker of the Superdry clothing range revised down its full-year profit towards the lower end of market expectations, at around £50 million.

The news is a blow to the manager of the £878 million Strategic Assets fund and his conviction will be severely tested as Collins Stewart has issued a note to sell the retailer and keep up short positions following today's news. According to the shareholder register dated 12 January, Littlewood owned around 930,000 shares in the firm accounting for a 1.16% interest in the firm.  

Supergroup’s chief executive Julian Dunkerton said: ‘Retail sales during the quarter have been mixed, with a challenging last three weeks of January.’

Despite this more recent slowdown, the retailer reported a ‘solid’ Christmas trading period, with a rise in sales of 9.3% at shops open for at least a year.

At the end of last year, Littlewood told Wealth Manager: ‘The shares are priced as if Supergroup is a brand with no legs. We think the brand is stronger than that. Witness Supergroup’s growth, especially internationally.'

Littlewood’s colleague John Dodd also has a holding in the retailer, at 0.25% in his Artemis Alpha Trust.

The duo would not comment on today's news.

Firms who had backed the Supergroup at its IPO in March 2010, including Standard Life Investments' Harry Nimmo and Marlborough's Giles Hargreave, have since sold out of the stock.

Strategic Assets is down -7.52% over three years to the end of December, compared with the Citywire Alternative Ucits benchmark, down -4.18%.