Revenues plummet by almost a quarter at struggling Superdry
Revenues has fallen by almost a quarter at struggling fashion brand Superdry as the company continues to deal with a series of challenges.
Last week the Cheltenham retailer brought in PWC to help deal with its mounting debts and this morning it issued a grim trading statement.
The company has also announced that it has parted ways with its chief financial officer Shaun Wills.
Revenue was down 23.5 per cent on the prior year as a result of the challenging consumer retail market, unseasonal weather and the underperformance of Superdry’s wholesale division according to the company’s half year results.
Statutory profit before tax of £3.3m due to the sale of Superdry’s brand rights in the Asia Pacific region.
The fall in revenues resulted in an adjusted loss before tax of £25.3m compared to £13.6m.
The company added that it is looking to make cuts of £40m in the financial year an extra £5m than originally forecast.
Founder and chief executive Julian Dunkerton said: “This has clearly been a difficult period for Superdry. A challenging consumer retail market, set against a backdrop of macroeconomic uncertainty and some remarkably unseasonal weather conditions have all combined to weaken the financial performance of the group.
“These macro and external factors have been further exacerbated by the underperformance of our wholesale segment. Whilst, to some extent, this was expected due to the decision to exit our US operations and the sale of the brand rights in non-core territories, the segment continues to prove challenging.
“Despite the near-term difficulties, we have made significant operational strides over the half year as part of our ongoing turnaround. Our cost savings programme remains on track and our inventory reduction programme is progressing well.
“We have also taken further action to support the balance sheet with a secondary lending facility agreed with Hilco Capital in August, and the agreement for a joint venture and disposal in South Asia, demonstrating the continuing attractiveness of the brand in foreign markets.
“Our efforts continue to focus on rightsizing the cost base and creating an operating model suitable for the needs of the organisation over the longer-term. Christmas trading proved challenging, and we do not expect market conditions to get any easier in the near-term. However, I firmly believe we are taking the right steps for the business and the brand, to return Superdry to profitability.”
Shaun Wills will step down as CFO and as a member of the board at the end of March.
Giles David has been appointed Interim CFO. He has track record in consume businesses where he has operated successfully in turnaround environments, with previous roles at companies including McColls, Casual Dining Group and Wiggle.
Shaun Wills said: “I have enjoyed my time at Superdry but now is the right time for me to move on. Superdry remains a business and brand of which I am extremely fond, and I wish Julian and the team every success in the future.”
