Struggling Superdry swings to annual loss and warns of little revenue growth this year
Struggling fashion retailer Superdry has reported a bigger-than-expected annual loss – and is warning it expects little revenue growth in the current financial year.
The British brand says a cost of living crisis, coupled with a fall in real wages, has contributed to weaker sales.
And the company – whose fashion line mainly includes sweatshirts and hoodies – says its performance has been affected by extreme weather in Europe.
Revenue for the three months to July fell by 18.4%, with Superdry saying there was lower demand for its spring/summer collection.
However, the company told investors that its latest autumn/winter range is selling better than it usually would at this time of year.
The chain ended the year to 29 April with an adjusted pre-tax loss of £21.7m, compared with a profit of £21.6m the year before.
‘Extremely challenging’ conditions
Superdry had delayed the publication of its annual report yesterday – and asked for shares to be suspended until results were released.
“This has been a difficult year for the business and market conditions have been extremely challenging,” CEO and founder Julian Dunkerton said.
For now, Superdry is raising funds in an attempt to shore up its finances – and says cutting costs is a priority.
Trading remained suspended on Friday – and so far this year, Superdry’s share price has plunged by 58%.