Superdry has warned on profitability for the year ahead as sales fell during the current financial year following the fashion retailer’s departure from the London Stock Exchange in bid for survival.
For the 52 weeks to April 27, 2024, Superdry recorded a pre-tax loss of £65.2m, down from a loss of £78.5m last year.
The British clothing company posted a 22% decline in revenue for the year from £622.5m last year to £488.6m, which it said was due to “underperformance” across its wholesale division as well as “softer” retail sales.
Retail sales during the period fell 16% to £371.6m with ecommerce and stores also both down 18% and 14% respectively.
Store sales in particular were impacted by “unseasonal weather and timing of promotions”, according to the retailer, which added that heavy discounting across its competitors also impacted sales.
The fashion retailer said in a statement filed on Companies House that it remains focused on its turnaround plan despite the “challenging market conditions” as well as being laser-focused on long-term growth and a return to profitabillity.
In terms of outlook, Superdry said it is targeting revenue of between £350m and £400m, as expected, but that it anticipates ongoing “voltatility” in the consumer retail market moving forward.
The fashion retailer also warned that profitability is expected to “continue to be impacted by weaker trading” in the year ahead.
In a statement from the board, Superdry said: “This has been a difficult period for Superdry, and our challenges have been well documented.
“Despite the progress made on our cost reduction initiatives and steps taken to create an operating model suitable for the needs of the organisation over the longer-term, the weaker-than-expected financial performance necessitated further action in the form of the restructuring, equity raise and delisting, outline to the market in Aprill 2024.
“Without the implementation of these measures, and in particular the restructuring plan, it was the view of the directors that the group would have needed to enter into administration, or an equivalent insolvency process.”
The retailer went on to say that the approval of its turnaround and restructuring earlier this year puts the business in “a stronger position to deliver its recovery and return the business to growth.”
The news comes after Superdry officially delisted from the London Stock Exchange in July this year, following shareholder approval of its restructuring plan.
In a bid to turn things around, Retail Week revealed last month that the fashion brand has opened its debut concept store, Athletic Essentials by Superdry, in a bid to target Gen Z shoppers.
Chief executive Julian Dunkerton told Retail Week at the time that the store is an opportunity to “move the brand forward” and that he hopes it will deliver “something fresh” to the next generation of Superdry shoppers.
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