Superdry reports ‘challenging’ trading amid new CFO announcement

Superdry has revealed its half-year revenues are down 23.5% to £219.8m due to a “challenging” consumer retail market as it also announces the appointment of a new CFO. 

The wholesale division is down 41.1%, meanwhile the retail segment proved “more robust” in the first half but has also underperformed expectations and was down 13.1%, with stores and ecommerce down 9.9% and 19.1%, respectively. 

Store revenue was driven predominantly by underperformance in the UK and Republic of Ireland, which saw a 10.2% decline to £56.6m. Stores in the UK and Republic of Ireland have been impacted by the unseasonal weather, with the extreme weather events of the summer and milder autumn impacting both footfall and conversion. Mainland Europe was down 3.6% to £39.8m.

The retailer has said that its adjusted loss before tax of £25.3m reflects the “weaker trading performance”. Profit before tax was £3.3m, due principally to the sale of Intellectual Property in the APAC region, offset partially by a non-cash impairment charge of £10.2m.

Performance in the 12 weeks to 20 January has remained has seen some more encouraging trends, with sales falling at 13.7% 

The retailer closed 12 stores in the half year, ending the period with 216 owned stores.

Julian Dunkerton, founder and chief executive officer, 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. 

“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.” 

The trading announcement comes as the fashion retailer revealed the appointment of Giles David as new CFO, succeeding Shaun Wills from 29 January. 

David has a strong track record in consumer-facing businesses where he has operated successfully in turnaround environments, with previous roles at companies including McColls, Casual Dining Group and Wiggle.

Regarding his departure from the company, 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.”