Superdry swings to loss amid 'difficult' retail environment
Superdry said on Wednesday that it swung to a full-year loss this year as it warned that revenues were likely to drop in 2020 as the retail environment remains difficult.
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In the year to 27 April 2019, the fashion brand swung to a pre-tax loss of £85.4m from a profit of £65.3m the year before, as it took a previously-announced non-cash charge of £129.5m relating to onerous leases and other impairments.
Meanwhile, revenue was flat during the year at £871.7m in "a difficult retail climate", with the first-half performance benefiting from discounting and space growth,while the second-half performance was poor across all channels.
Founder and interim chief executive Julian Dunkerton said: "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."
The company said global retail markets are expected to remain highly competitive and the consumer outlook remains uncertain, including the continued uncertainty surrounding Brexit.
"Given the scale of the trading downturn in FY19 and the lead times required to rectify the product range and proposition, management view FY20 as a year of reset, creating a platform from which Superdry can return to long-term profitable growth," it said.
Superdry said it expects revenue to show a "slight" decline in FY20, particularly in the first half, as it rebalances promotional activity and strengthens the brand.