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Gloucestershire Business News

Superdry 'issues will not be resolved overnight' says Julian Dunkerton as firm posts £85m loss

Superdry's issues will "not be resolved overnight", founder and interim chief executive Julian Dunkerton has warned after the company posted their annual results.

The Cheltenham-based fashion giant reported an annual loss of £85.4million for the 52 weeks to April 27, 2019 this morning - a huge swing from the previous year's £65.3million profit.

It comes after a year of upheaval at Superdry that saw a bitter boardroom battle that eventually led to Dunkerton's return to the board and the role of interim chief executive.

That move happened in early April and Dunkerton and incoming chairman Peter Williams set about a programme called 'revitalising Superdry' after a year of upheaval and underperformance.

Those struggles are shown in accounts that show a flat-lining of turnover with just a £300,000 drop in total group revenue to £871.7million.

Underlying profit before tax was down 57 per cent on the previous year to £41.9million, wile onerous lease and impairment charges of £129.5million hit the bottom line.

Mr Dunkerton's return is noted as a strategic imperative to the business "to direct and strengthen the business, focussing on design-led roots and creating a strong platform for long-term profitable growth."

In a statement released alongside the results, Mr Dunkerton said:The issues in the business will not be resolved overnight.

"My first priority on returning to Superdry has been to steady the ship and get the culture of the business back to the one which drove its original success.

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"All the team in Superdry are working incredibly hard to deliver the direction set out, with a real focus on returning the business to its design-led roots and getting the retail basics right.

"Although we are only three months in, our initiatives are gaining some early traction, and I am confident we are doing the right things to ensure that over time Superdry will return to strong profitable growth."

Reflecting on the reported figures, chairman Peter Williams added: "These are clearly a very disappointing set of results.

"However, everything I have learnt since joining the business in April has reinforced my view that Superdry is a powerful brand with great people across the organisation.

"While we have been clear it is going to take time, I remain convinced that continuing to work closely with Julian and the leadership team, we are building the right plan to deliver long-term sustainable growth for shareholders."

Superdry shares were trading marginally down by around 2.8 per cent after the results were revealed.

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