Superdry plc has had a turbulent year.
In its half-year report on Friday, the British fashion company said sales fell 23.5 percent, due to the difficult retail market, weather and declining wholesale results. It has already been predicted that it will be a difficult year for Superdry. In December, Superdry issued a profit warning and discussions began about selling its brand rights in the US and the Middle East.
As of October 28, 2023, Superdry had sales of 219.8 million British pounds. This corresponds to 257.6 million euros. Retail sales fell 13.1 percent and wholesale sales fell 41.1 percent. Structural changes in the market played a role here. Strategic decisions, such as the termination of activities in the USA as well as the sale of trademark rights and ongoing clearance sales, also had a major influence here.
Not only are sales falling, Superdry’s adjusted pre-tax loss is also worsening. The British fashion company recorded a pre-tax loss of 25.3 million British pounds (29.6 million euros) in the first half of the year, almost doubling its red numbers. In the same period last year, the loss before tax was 13.6 million pounds. The bottom line is that Superdry posted a loss of 28.9 million British pounds (33.9 million euros). That is 10.9 million British pounds less than a year earlier.
Although the loss reduction is still below target, it shows that the measures taken [Beendigung des US-Geschäfts und Verkauf von Markenrechten, Anm. d. Red] Bear fruit. Total operating costs decreased 16.1 percent, reflecting significantly lower sales and distribution costs and centralized costs. Superdry therefore announced that it would continue to focus on reducing costs. The company aims to save $40 million (46.9 million euros) throughout the fiscal year.
CFO leaves Superdry temporarily
Just as the company manages to cut costs, Superdry announced in a separate statement that Shaun Wills, chief financial officer (CFO), will be leaving the company on March 31, 2024. Giles David will take on the role of CFO on an interim basis and will join the company on January 29th. Giles will also join the board of directors from April 1.
This translated article previously appeared on FashionUnited.nl