Struggling retailer Superdry announces losses of £148m
Troubled retailer Superdry has reported a statutory loss £148m the last 12 months.
The Gloucestershire firm published its annual results this morning after a short delay.
Group revenue increased by just over two per cent to £622.5m as brand recovery continues.
Robust retail growth of 14.6 per cent was offset by a 19.1 per cent decline in wholesale as the company continues to be impacted by a more cautious outlook from partners.
Stores revenue was up 14.7 per cent as recovery from Covid in the US and UK continues with strong peak holiday sales.
The delayed recovery in wholesale and the return to normal rent and business rates impacted underlying profitability resulting in an adjusted loss before tax of £21m.
.The company announced a statutory loss after tax of £148.1m, mainly due to accelerated non-cash impairments of store assets of £43.3m, a non-cash reduction in the recognised deferred tax assets from £66.3m at FY22 to £nil in the current year, and other adjusting items.
Actions to improve the balance sheet continue, including IP sale and equity raise together yielding approximately £45m after year-end, alongside a cost saving programme to deliver £35m, to be fully realised in the next 12 months.
The company has agreed loan facilities during with Bantry Bay Capital for up to £80m, and a further £25m facility with Hilco Capital agreed post year end.
Julian Dunkerton, founder and chief executive, said: “This has been a difficult year for the business and the market conditions have been extremely challenging, especially in wholesale. We’ve looked closely at how we operate and have taken decisive actions to improve our position, rebuild liquidity, and recapitalise our balance sheet, through careful preservation of cash and a re-engineered cost base.
“The good news is that despite the external turbulence, the brand is in sound health and has momentum. Stores and Ecommerce delivered a strong sales performance, and I’m excited by our collections for the Autumn/Winter 23 season.
While Wholesale remains very challenging, I believe the new team in place will recover this business in the medium-term. I’m really excited by our new partnership in Asia, finalised after year-end, which not only has helped rebuild our balance sheet but will ensure Superdry can achieve its potential as a truly global brand.
“I’d like to thank all our team for their commitment during a period of change for the business. The start to the new year has been tough, not helped by unseasonal weather and highly promotional markets, and I’m not expecting the consumer environment to become any easier soon. However, the actions we have taken and continue to take to ensure the health of the business, give me more confidence as we look into the future.”
