Big losses for Superdry
By Sarah Wood | 1st September 2023
Cheltenham-based Superdry made a statutory loss after tax of £148.1m last year.
In its full-year results for the year to April 29, the fashion retailer reported the losses were mainly due to accelerated non-cash impairments of store assets of £43.3m, a non-cash reduction in the recognised deferred tax assets from £66.3m at FY22 to £nil in the current year, and other adjusting items.
When adjusted, pre-tax loss for the year was £21.7m, compared to pre-tax profits of £21.6m the previous year.
Superdry saw a small increase in sales of 2.1% to £622.5m. Retail growth of 14.6% was offset by a 19.1% decline in wholesale, which was impacted by a more cautious outlook from the brand's retail partners.
Store sales were up by 14.7%, as Covid recovery continued in the UK and UK, with strong peak holiday sales.
Ecommerce revenues increased by 14.3% due to good third-party site performance and Superdry's best Black Friday event.
Julian Dunkerton, founder and CEO, said: "This has been a difficult year for the business and the market conditions have been extremely challenging, especially in wholesale. We've looked closely at how we operate and have taken decisive actions to improve our position, rebuild liquidity, and recapitalise our balance sheet, through careful preservation of cash and a re-engineered cost base.
"The good news is that despite the external turbulence, the brand is in sound health and has momentum. Stores and ecommerce delivered a strong sales performance, and I'm excited by our collections for the Autumn/ Winter 23 season. While wholesale remains very challenging, I believe the new team in place will recover this business in the medium-term.
"The start to the new year has been tough, not helped by unseasonal weather and highly promotional markets, and I'm not expecting the consumer environment to become any easier soon. However, the actions we have taken and continue to take to ensure the health of the business, give me more confidence as we look into the future."
In the first 13 weeks of the current year, to July 29, store revenue declined by 3.7% when compared with the same period last year, which Superdry attributed to the unseasonable weather and a later start to the end-of-season sale.
In a statement on its website, Superdry said: "The consumer retail market continues to remain challenging and unpredictable. The extreme weather events across the UK and Europe have had a negative impact on our Spring Summer collection. Conversely, our new Autumn Winter collection is selling better this early in the season, than usual."
The retailer doesn't expect to see significant revenue growth in the current financial year, as it focuses on cost savings and margin improvement. The £35m cost savings programme it announced earlier in the year should be fully realised during the current financial year.
On Wednesday (August 30), Superdry's shares were temporarily suspended, after these results were delayed by three days.
Earlier this month, the retailer secured up to £25m in funding from restructuring specialist Hilco Capital to help fund its turnaround plan. This is on top of its existing £80m asset-backed loan with Bantry Bay Capital.
In May, eight units belonging to Superdry on The Runnings in Cheltenham went on the market, with a total sale price of over £4 million.
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