Sales for Cheltenham-based Superdry haven't met expectations, but CEO Julian Dunkerton remains positive, according to a trading update released today (April 14).

The fashion brand said, while like-for-like sales in February and March grew, they were lower than expected, which it attributed to the cost-of-living crisis and poor weather reducing demand for its spring and summer ranges.

Superdry now expects full-year sales for 2023 to be in the range of £615m to £635m, a small increase on 2022's £609m.

Wholesale performance continues to lag behind the rest of the business.

To further strengthen its balance sheet, the retailer said it is considering an equity raise of up to 20% of its issued share capital.

Superdry has also identified initial cost savings of over £35m. These will be achieved through estate optimisation, logistics and distribution savings, better procurement and continued range reduction.

It expects the savings to be fully realised by the end of FY24, with the costs to achieve them mainly incurred during 2023.

Julian Dunkerton, founder and CEO, said: "The Superdry brand continues to evolve, but there is no doubt that the market conditions we face are challenging, compounded by the issues we have previously disclosed and are working to address in wholesale. As a result, while we continue to deliver like-for-like growth in retail sales, we need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base.

"My belief in the Superdry brand is stronger than ever, which is why I'm prepared to provide material support to any equity raise undertaken. I am confident that we have the right plan and, working together as a team, the business will emerge from the current turbulence stronger than ever."