Superdry reports drop in Christmas sales, says CFO to depart
Reuters
Published Jan 26, 2024 07:18
Updated Jan 26, 2024 09:31
By Prerna Bedi
(Reuters) -British fashion retailer Superdry does not expect market conditions to improve in the near term after a tough Christmas season, it said on Friday, adding that finance chief Shaun Wills will step down at the end of March.
Superdry, known for its jackets and clothing inspired by American vintage styles and Japanese graphics, reported a 13.7% drop in group sales for the 12 weeks to Jan. 20 due to milder autumn weather.
"A challenging consumer retail market, set against a backdrop of macro-economic uncertainty and some remarkably unseasonal weather conditions have all combined to weaken the financial performance of the group," CEO Julian Dunkerton said in a statement.
It reiterated that profitability in the full year to late April would be dented by a weak trading environment, but said recent colder weather has helped boost sales.
The London-listed company said its adjusted loss before tax for the six months to Oct. 28 widened to 25.3 million pounds ($32.1 million) from 13.6 million pounds a year before, which Peel Hunt (LON:PEEL) analysts said were better than its estimates.
Shares in the company, which have lost nearly 89% of their value in the past 12 months, were up 0.7% at 17 pence apiece at 0830 GMT.
"Superdry is famous for its outerwear and warmer clothes, so the recent cold snap has added a bit of warmth into numbers, but not enough to thaw remaining challenges," analysts at Hargreaves Lansdown (LON:HRGV) said in a note.
Chief Financial Officer Wills will depart after three years in the role, having previously served as CFO of Superdry's parent firm SuperGroup for three years until 2015, when he stepped down after being declared bankrupt.
Superdry named Giles David as its interim CFO, effective Jan. 29. Sky News reported this month that Superdry was exploring new debt options to boost liquidity.
The Gloucestershire-based firm has over the past year sold its intellectual property (IP) rights in South Asia and Asia Pacific in two separate deals, and has secured funding twice.
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Written By: Reuters
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