Superdry’s shares plunge 16.5 per cent as retailer downgrades guidance amid £17.7m of losses
Superdry’s shares plunged 16.5 per cent this morning after the retailer downgraded its-full year guidance amid soaring losses.
Instead of a profit of between £10m and £20m Superdry expects to break even, after losses soared to £17.7m in the first half of its 2023 financial year.
This is a £21.7m decrease when compared to a profit of £4m a year earlier.
Its adjusted loss before tax widened, rising £2.8m in 2022 to £13.6m a year later.
Superdry blamed the loss on a 5.2 per cent decline in wholesale levels – the amount of clothing sold to retailers- due to a lagged post-pandemic recovery.
“Our profits in the first half fell short of expectations mainly due to the underperformance of wholesale,” said chief executive and founder Julian Dunkerton.
“Whilst we did trade well through November and December, the outlook for the remainder of the year is uncertain and as a result, we are moderating our profit outlook to broadly breakeven.”
Stores grew 14.3 per cent to £117.7m as customers returned to the high street with an increased demand for womenswear, denim and jackets.
Over the Christmas period, demand continued to strengthen with stores back to 2019 levels and revenue up 25 per cent.
“Our coats performed really well in the run up to Christmas, and womenswear continues to be a highlight for us,” the chief executive added.
“Stores continued to recover strongly and online had its biggest ever week over Black Friday, helped by our new e-commerce platform which is delivering real benefits.”
Commenting on the results, Interactive Investor’s head of investment Victoria Scholar said the downgrade reflects “the pressure facing UK consumers with sky high inflation and the economy teetering on the brink of a recession.”
“Investors have fallen out of favour with the stock which is down by more than 90 per cent over the past five years,” she added.
“Despite enjoying a boost to warm winter clothing demand and a record for jacket sales over Black Friday, investors remain cautious.”