Superdry may have to raise new funds as weather dampens profits
Superdry has warned that it no longer expects to make a profit this year and may have to raise new funds as a damp spring and the cost of living crisis hit sales.
The British fashion brand said it was considering raising money as it also struggled with disappointing wholesale sales.
The funds would be raised by offering new shares worth up to 20% of its market value – just under £14.5m at Friday’s share price – supported by its co-founder and chief executive, Julian Dunkerton, who owns a fifth of the company. Dunkerton took back control of the firm in a boardroom coup in 2019.
Superdry said retail sales in February and March were showing “significant” growth on last year but had not met its expectations, partly because the cost of living crisis had hit spending and footfall, and poor weather had resulted in “less demand for our new spring-summer collection”.
The update shook investor confidence in the retailer, as shares slumped 16% on Friday.
The company said it had identified cost savings of £35m and was looking at options to reduce costs further, which it said would lead to a “material uplift in underlying profitability” in future.
Dunkerton said the company needed to ensure it “is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base”.
He added: “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.”
Dunkerton, who started out selling clothes on a Cheltenham market stall, launched Superdry with the designer James Holder in 2003. Their first
Read more on theguardian.com
