Superdry plunges into loss as Julian Dunkerton ‘steadies ship’

The fashion retailer posted a statutory pre-tax loss of £85.4m in the year to April 27, compared with a profit of £65.3m in the previous year.

On an underlying basis, Superdry’s profits slumped almost 57% to £41.9m.

Sales were flat at £871.7m.

Dunkerton, who alongside chairman Peter Williams returned to Superdry in April, prompting the resignation of most members of the incumbent board, said he would strengthen the business by focusing on design, “reigniting” the brand DNA, rebuilding profitability and building a team to stabilise Superdry.

He said: “The issues in the business will not be resolved overnight. My first priority has been to steady the ship and get the culture of the business back to the one which drove its original success.

“All the team in Superdry are working incredibly hard to deliver the direction set out, with a real focus on returning the business to its design-led roots and getting the retail basics right.

“Although we are only three months in, our initiatives are gaining some early traction, and I am confident we are doing the right things to ensure that over time Superdry will return to strong profitable growth.”

Williams said: “These are clearly a very disappointing set of results. However, everything I have learnt since joining the business in April has reinforced my view that Superdry is a powerful brand with great people across the organisation.

“While we have been clear it is going to take time, I remain convinced that continuing to work closely with Julian and the leadership team, we are building the right plan to deliver long-term sustainable growth for shareholders.”

He said the appointment to the board of former M&S finance boss Helen Weir and ex-New Look director Alastair Miller brought “extensive retail and listed company experience”.

Superdry expects the retail market to remain highly competitive and the consumer outlook uncertain.

It said the new financial year would be one of “reset”, reflecting the tough market and “historic issues inherited”.

Group revenue is expected to decline “slightly”, particularly in the first half of the year.