// 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Superdry has withdrawn its “broadly breakeven” full-year profit guidance following disappointing retail sales in February and March.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.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
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.
Click here to sign up to Retail Gazette‘s free daily email newsletter
