Superdry shares plunge ahead of results as analysts and co-founder Julian Dunkerton issue warnings

Superdry shares plunged seven per cent this morning following damaging brokers' notes and criticism from co-founder Julian Dunkerton.

Analysts Berenberg downgraded its stance on the retailer to 'hold' and cut its earnings forecast for 2019-21 ahead of the company's half yearly results tomorrow.

It comes just a day after Dunkerton, who quit the business earlier this year, criticised Superdry's strategy in a Liberum note as he stepped up his campaign to return to the firm.

Dunkerton told Liberum: “The interaction between stores and the internet is going to be so fundamental to the future of retail.

“Consumers have adopted the internet and by doing so have moved away from the limitations of the high street and towards a world of unlimited choice – the premise here is if one does not participate in this world you will get left behind.”

Shares in the retailer have now dropped more than 60 per cent this year and analysts warned it could get worse following tomorrow's results.

The fashion retailer announced a £23m profit warning in October, blaming hot weather and foreign exchange problems.

Berenberg also noted its reliance on winter clothing could hinder its first half of the year results – the Japanese-inspired brand makes around 45 per cent of annual sales from jackets and sweatpants.

“The misery on the high street looks set to continue with Superdry shares plunging this morning ahead of their first half numbers, which are due out tomorrow,” CMC Markets analyst Michael Hewson said.

“Shares were already down 60 per cent this year even before today's declines, and tomorrow's numbers could put management under further pressure.”