Superdry swings to full year loss
Superdry has swung to a full year loss after a twelve months of “considerable challenge.”
In the 52 weeks to 27 April, the fashion retailer made a pre-tax loss of £85.4 million. This compares to a profit of £65.3 million in the previous year.
Group revenue was flat at £871.7 million while underlying pre-tax profit was down 56.8% to £41.9 million. The retailer said its performance in the second half was poor across all channels.
The year saw Superdry’s co-founder Julian Dunkerton return to the business despite opposition from its board. The move resulted in the chief executive and other board members resigning.
Dunkerton said today: “The issues in the business will not be resolved overnight. My first priority on returning to Superdry has been to steady the ship and get the culture of the business back to the one which drove its original success.
“All the team in Superdry are working incredibly hard to deliver the direction set out, with a real focus on returning the business to its design-led roots and getting the retail basics right.
“Although we are only three months in, our initiatives are gaining some early traction, and I am confident we are doing the right things to ensure that over time Superdry will return to strong profitable growth.”
Superdry issued three profit warnings in the year. The company blamed unseasonably warm weather over a prolonged period for poor trading. It also said that Superdry may have been losing its appeal to customers.
The company will now focus on “bringing back design excellence” to its products. It will also be aiming to “re-ignite the brand DNA” through consumer engagement and social media.
Looking ahead, Superdry expects group revenue to show a slight decline in the current financial year, particularly in the first half, as it balances promotional activity and works to strengthen the brand.
It added: “We expect our financial performance in FY20 to reflect market conditions and the historic issues inherited.”