Today’s news in brief-16/4/24
Superdry has announced a restructuring plan targeting rent reductions across 39 UK stores. The company, seeking to secure its future amidst financial challenges, will undergo a delisting from the stock exchange. Founder Julian Dunkerton is underwriting an equity raise of up to £10m to support the initiative. While store closures aren’t part of the plan, landlords have the option to terminate leases if dissatisfied with terms. Superdry aims for “material cash savings” over three years.
Dr Martens CEO Kenny Wilson is stepping down as the company anticipates a decline in USA wholesale revenues affecting profitability in FY25. Chief Brand Officer Ije Nwokorie will succeed Wilson. The brand expects a £20m profit hit due to wholesale order nature and a lag in restock benefits. Despite this, Q4 saw direct-to-consumer sales recovery driven by growth in EMEA and APAC. FY24 results will be announced on 30 May.
B&M forecasted a 9.8% profit increase after reporting a 10% rise in revenues to £5.5bn for FY24. The positive growth, supported by volume and like-for-like sales, benefited from an extra trading week and early Easter timing. B&M UK saw a 2.9% Q4 sales increase and opened 47 new stores. CEO Alex Russo highlights customer focus and operational excellence for driving profitable growth.
Marks Electrical achieved record revenues of £114.3m for FY24, marking a 16.9% increase. The online retailer improved market share in Major Domestic Appliances and Consumer Electronics. It exits the Euronics buying group to establish closer manufacturer relationships, aiming for future growth and margin expansion. CEO Mark Smithson emphasises customer service and strategic investments.
Sosandar recorded a 9% revenue increase to £46.3m for FY24, expecting a marginal loss overall. Gross margin rose to 57.6%, reflecting reduced promotional activity and progress toward physical store openings. Co-CEOs Ali Hall and Julie Lavington highlight profitability in H2 and strong customer response to the brand’s offerings.
George at Asda reported soaring online growth and outperforming fashion sales in-store over the latest six-month period. The retailer’s fashion sales, especially in women’s, menswear, kids, and schoolwear, exceed market averages. Online fashion sales rose by 13.4%, outpacing the wider market, while in-store fashion sales grew by 5%. Managing director Liz Evans attributes the success to investment in product, channels, and understanding customer needs.
