The British clothing retailer Superdry Plc admitted on Friday that sales development had recently fallen short of expectations and withdrew its profit forecast for the current 2022/23 financial year.
According to a statement, the company was recently able to achieve “good growth” in its own retail business. However, the rate of increase was lower than expected. In addition, sales development in the wholesale business continues to be “challenging”, Superdry explained. The clothing supplier is now anticipating total sales in the range of 615 to 635 million pounds sterling (695 to 718 million euros) for the current financial year.
In view of the difficult market environment, increasing uncertainties and the ongoing measures to reorganize the wholesale segment, it is currently difficult to estimate how earnings will develop, the company admitted. Management has therefore decided to withdraw its profit forecast for 2022/23. Previously, earnings before taxes adjusted for special effects “in the range of break-even” had been promised.
The company announces further austerity measures and is considering a capital increase
The company also said it was considering a capital increase of up to 20 percent to strengthen its finances. CEO Julian Dunkerton supports such a measure and will participate in a possible capital increase, Superdry announced.
At the same time, the clothing retailer announced that it had identified concrete opportunities to reduce costs by more than £35m as part of ongoing reform efforts. The corresponding savings should therefore be realized in the course of the coming financial year. The company is currently looking for other options to achieve additional cost reductions, according to a statement.