Superdry releases third quarter results
By Andrew Merrell | 7th February 2019
When a former owner is questioning your products choices the last thing you probably need is a set of results which could give him more ammunition.
Superdry, the world-wide success story and Cheltenham headquartered fashion brand, has just released its third quarter trading statement.
The statement straddles the important Christmas period, running from October 28 to January 26, and shows an increase in global brand revenue of 5.4 per cent, from £454.9 for the same period last year to £479.6 million this year.
What the group has also had to explain is the tail off in group revenue, a fall of 1.5 per cent, from £273.3 million to £269.3 million.
Euan Sutherland, chief executive officer, said: "Superdry's performance has remained subdued during quarter three.
"We continued to be impacted by the ongoing product mix and relevance issues we have previously highlighted and by the lack, until the end of quarter three and the start of quarter four, of any prolonged period of cold weather in our key markets.
"We are pleased with the early progress being made with our transformation programme, designed to reset the business and deliver a return to higher levels of growth and profitability."
That "product mix" brings us back to the attempts highlighted in the national press by founder and still major shareholder, Julian Dunkerton, to return to the board.
My Dunkerton has criticised the product direction of the company and has been reportedly in talks with the business with a view to becoming involved again at board level, although none of the latter has been confirmed by Superdry.
As for its third quarter results, the company said it had been "impacted by subdued store and ecommerce sales driven by ongoing legacy product issues and continued unseasonably warm weather throughout the quarter".
The report also highlighted its continued plans to achieve £50 million of cost savings by the end of 2022.
"As outlined on December 12, 2018, the comprehensive transformation programme has been intensified in response to the challenges faced," said the report.
"This programme builds on the underlying strengths of the brand and the operational capability which has been established over the last four years."
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