Superdry

Ticker SDRY

Today's data summary

Market closed
% change
+2.36%
Price Pence
424.60
Change
+9.80
As of 21:55 19 Jul 2019
Market cap. Pound sterling
348.16 million
As of 21:55 19 Jul 2019

Latest updates

Why is Superdry doing so badly?

Superdry store on Regent Street, London
NurPhoto

In case you missed it, Superdry posted a whopping £85m loss earlier, prompting its founder and recently reappointed CEO Julian Dunkerton to say that he is trying to "steady the ship".

So why is the fashion brand doing so badly?

According to retail analyst Chris Field: "Central to [Julian Dunkerton's extensive turnaround plan] will be addressing Superdry’s hefty global store estate, which is under-performing due to legacy leasing and dwindling footfall as fashion shoppers move online."

The firm is also struggling with a sluggish supply chain, an over-reliance on discounting, and high turnover of senior executives, says Mr Field.

"‘Revolving door’ management creates instability, and this is bound to distract the company from doing what it takes to thrive in an increasingly competitive marketplace."

Superdry to stay on High Street

Julian Dunkerton
BBC

Superdry founder Julian Dunkerton (pictured) says he is trying to "steady the ship" after the fashion retailer reported an £85m annual loss.

Executives have been speaking to analysts after those figures

Over the next two years 40% of its shop leases come up for renewal offering it an opportunity to renegotiate terms with landlords.

“We expect to work symbiotically with landlords,” executives told analysts on a conference call.

So despite that hefty £85m loss reported this morning for the last year, the retailer’s not predicting it will have to close stores, or not many. Closures will be “very minimal” they said.

Their belief is that landlords want Superdry in their shopping centres and on their High Streets and will be happy to talk terms.

Superdry reports 'very disappointing' loss

superdry store
Reuters

Superdry has reported a statutory annual pre-tax loss £85.4m compared with a a profit of £65.3m a year earlier.

The company focused on underlying profit before tax of £41.9m, which it said was "significantly" below the prior year of £97m and taking into account "onerous" lease provisions.

Julian Dunkerton, who won his battle earlier this year to return the company, he founded, 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".

Chairman Peter Williams said the results were "very disappointing".

Superdry gets two new board members

superdry store
Reuters

Superdry is rebuilding its board after founder Julian Dunkerton won his bid to be reinstated to the company's board in April.

That led to an emergency board meeting at which eight directors resigned en masse.

Helen Weir, the former finance director of Marks & Spencer, and Alastair Miller, a former finance director of New Look, are joining as non-executives.

Ms Weir - who has also held roles at John Lewis, Lloyds Banking Group and Kingfisher - will be the senior independent director and Mr Miller will become chair of the audit committee.

Superdry chairman Peter Williams, said: "Since becoming chairman in April it has been a priority of mine to restore the board to full strength and these appointments are a big step in that direction.

"We continue to search for an additional two non-executive directors and will make further announcements in due course."

More on Superdry

Julian Dunkerton
Superdry

Julian Dunkerton, (pictured), the interim chief executive of Superdry, says he is "very excited" about being back.

"There's a lot to do, but after five weeks, I am more confident than ever that we can restore Superdryto being the design-led business with strong brand identity I know it can be," he said.

"My first priority has been to stabilise the situation, and all of us in the business are putting all our energy into getting the product ranges right and improving the Ecommerce proposition, which are two important steps towards addressing Superdry's recent weak performance.

The impact of the changes we are making will take time to come through in the numbers but I'm confident we are heading in the right direction."

That's after Superdry's trading update showed revenue flat year-on-year (0.0%), and declining 4.5% in the fourth quarter.

BreakingSuperdry won't meet profit expectations

superdry shop
Reuters

Superdry says its full-year underlying profit before tax is "likely to be below the range of market expectations".

That's according to the retailer's fourth quarter trading update (13-weeks to 27 April) and comes after its founder Julian Dunkerton won his bid to be reinstated to the board last month.

Superdry sinks

share price
BBC

As mentioned earlier, Julian Dunkerton was installed as interim chief executive at Superdry yesterday after he won enough support to be elected to the board of the company he founded.

He had complained about the 65% fall in the share price since he left a year ago. Today the shares are down almost 10% - continuing the share price slide over the last 12 months illustrated above.