Superdry has reported an 11% drop in revenues for the first half of the year but its returning chief executive hails the “good progress” it has made in its turnaround plan.
For the 26-week period ending 26 October 2019, revenues reached £367.8m compared with £414.6m the previous year. Superdry said the figure “reflects an expected year of reset”, and the need to address a “number of legacy issues across the business”. Its wholesale revenues also dropped by 11.2% after it was hit by “heavy discounting”.
However, the company added it is “confident in delivering further benefits from reset initiatives in the second half of the year.” It said it has taken “swift and decisive action” to implement strategic changes as part of the business reset, which is a “two to three year programme to gain full control of the product and costs”.
Julian Dunkerton, CEO, said: “We are making good progress with the start to our turnaround plan for Superdry, returning the business to its design led roots. We have always said it will take time, but we have a strong team which is working incredibly hard to deliver this plan.
“I’m genuinely excited by new injection product which has started to land in stores for this peak and even more excited about the new ranges signed off for next year.”
He added: “We are moving the business away from a reliance on constant promotions, and while this focus on full price sales has affected revenue in the first half, this is being partially offset by a better gross margin performance. There is good momentum in the business, and I remain confident of returning Superdry to sustainable long-term growth.”
Dunkerton was permanently appointed to the role of CEO last month after returning as interim CEO on the 2 April 2019, after he won the support of 51.15%, following a long dispute with its executive board resulting in chairman Peter Bamford, chief executive Euan Sutherland, chief financial officer Ed Barker, and chairman of the remuneration committee Penny Hughes all stepping down with immediate effect.