// Superdry withdraws its profit guidance of “broadly breakeven” for its current year
// The business said it has identified cost savings of over £35 million
Superdry has withdrawn its “broadly breakeven” full-year profit guidance following disappointing retail sales in February and March.
To further strengthen its balance sheet, the fashion retailer confirmed it is considering an equity raise of up to 20% of its issued share capital.
Revenue for full-year 2023 is now expected in the range of £615m to £635m as the business said shoppers limited non-essential spending amid the cost-of-living crisis and poor weather hit demand for spring-summer items.
Superdry said the performance of its wholesale division continued to lag the rest of the group.
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As part of the group’s turnaround plan, the retailer said it has identified cost savings of over £35m to be realised by the end of 2024, which will be achieved through estate optimisation, logistics, distribution savings, better procurement and range reductions.
Founder and chief executive Julian Dunkerton said “The Superdry brand continues to evolve but there is no doubt that the market conditions we face are challenging, compounded by the issues we have previously disclosed and are working to address in Wholesale,”
“We need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base,”
“My belief in the Superdry brand is stronger than ever which is why I’m prepared to provide material support to any equity raise undertaken,” he added.
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3 Comments. Leave new
Yet another very good company overexposed to the UK consumer. The UK economy is done for, too much debt, a culture of allowing factors to push down wages until there is little left for consumers to spend.
Very sadly, its time to dump the UK as a market and explore growth markets.
Peter I agree and disagree with your statement.
The UK market is obviously not thriving like it once did before.
But dumping the UK as a market would just crumble potential brand-buyers despite living crisis/economic crisis.
Hi Harry, I’d like to disagree with myself, but.
The so-called cost of living crisis is a red herring. Provoking Russia and expanding the agenda means we are not in a crisis, we are under new conditions for the cost of energy. That means MOST costs will stay much higher. There is no light at the end of the long tunnel.
Demographics in the UK are dreadful. The only way the consumer mix looks younger is thanks to mass immigration. Sadly, the newer arrivals often are low-skilled, low earning or actually a cost to the taxpayers until they adapt and evolve market-valued skills. They are low value consumers to be blunt.
John Lewis is a good indicator too. Homeowners and older consumers are the targets. They will soon be selling homes to fund downsizing and support pension income and care costs. Thus, housing is an obsession in the UK and an imagined wealth pot. It’s time to realise that Britain is truly done and heading into poverty. Dump it and run.
You reap what you sew, the UK has been stripped and future generations are facing a bleak and dire future.