“Year of reset” brings £4.2m half-year loss for Superdry

“Year of reset” brings £4.2 half year loss for Superdry
Superdry swung to a loss before tax of £4.2 million.
// With founder Julian Dunkerton back at the helm, profits fell to just £200,000 in H1
// Dunkerton: “I am pleased with the progress we have made to comprehensively reset Superdry”
// Superdry says full price stance on merchandise is “protecting margin and brand”

Superdry saw year-on-year underlying profits fall 98.4 per cent in the 26 weeks to October 26, coming in at just £200,000.

The fashion retailer also swung to a loss before tax of £4.2 million, down from achieving a profit of £26.4 million the year before.

READ MORE: Superdry names founder Julian Dunkerton as permanent CEO

Revenue dropped 11 per cent to £369.1 million year-on-year, in what the retailer described as reflecting “an expected year of reset, as we address a number of legacy issues across the business”.

Superdry’s results show it managed to grow its debt pile to £9.3 million, compared to a cash position of £19.2 million in 2018.

The retailer said a focus on full price sales and reducing promotional activity drove a total underlying gross margin increase.

“At this halfway point in our financial year, I am pleased with the progress we have made to comprehensively reset Superdry,” founder and chief executive Julian Dunkerton said.

“We’re doing this through our product and brand, our physical and digital retail operations and a renewed focus on the retailing basics.

“We are only eight months into a process that will take two to three years, but I have great confidence in the strength of our new executive leadership team.

“I am also pleased with the trajectory of performance we have seen from Q1 to Q2 and subsequently into our peak trading period, which gave us our biggest online trading day ever.

“However, we remain cautious about the challenging market conditions over the peak trading period.”

Dunkerton announced his return to the retailer earlier this year.

Upon his re-appointment, Superdry said the decision reflected “the board’s unanimous view that he is the right person to lead the business through this initial crucial phase of the turnaround”.

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