THERE were more signs of strife on the high street today when Superdry said sales had tumbled over the summer.
It blamed this on an “abnormally mild autumn” which led to delayed sales of its winter collection. Profits will be hit.
Retails half year sales fell 13%. The wholesale arm fared even worse, down 41%, though this was “to some extent” a result of the decision to exit the US wholesale operation.
The already battered shares fell 7p, 16%, to 35p. That leaves the business valued at just £35 million.
Julian Dunkerton, the founder and CEO, said: “The unseasonal weather through the early autumn led to a delayed uptake of our Autumn/Winter range and this impacted sales in the first half of the year. Whilst we have seen modest signs of improvement through the recent spell of colder weather, current trading has remained challenging, and this is reflected in the weaker than expected business performance. The operational progress we have made in the first half has been more encouraging with the IP sale for the South Asian region and strong progress on our cost efficiency programme.”
Dunkerton returned to the business in 2019 after a boardroom battle. He felt the previous management had destroyed the brand – they all quit in protest at his return.
Today the company said its cost efficiency programme would lead to £35 million of cost savings within the year.
Nearly all mid-range retailers have struggled lately as consumers tighten their belts.
Dunkerton has revamped the clothing lines and overhauled the flagship Oxford Street store. He earlier complained that Oxford St needs improving. He told the Standard back in September: "I will be very happy when Oxford Street sorts itself out. My shop is great. I feel like we are doing a great job, I don’t see that around me."Brokers at Peel Hunt slashed the target price they had for the shares from 130p to just 40p. It expects a full-year loss for Superdry of £45 million.
