Superdry dives as analysts claim recovery hopes are overblown

RISING hopes of a quick recovery at Superdry following the return of founder Julian Dunkerton were punctured by analysts warning of its waning brand power.

The company’s shares held firm on Thursday despite issuing a third profit warning in less than a year as Mr Dunkerton vowed to steer a turnaround at the ailing retailer.

However, its shares suffered a setback yesterday after a UBS survey revealed that shoppers’ perceptions of the brand have deteriorated over the last 12 months, particularly regarding design. The bank argued that the survey suggested that “a product refresh is the necessary next step” for Mr Dunkerton.

Superdry’s founder seized back control of the company in April after the resignations of the company’s top management team was triggered by him winning a seat on its board. UBS warned that “it is still early days in a multi-year turnaround” as it slashed its 2019 pre-tax profit forecast for Superdry by 22pc. The retailer’s shares slid 26p to 455p, a 5.4pc tumble.

Elsewhere, US markets suffered their worst week in 2019 as the stocks rout on Wall Street deepened amid rising trade tensions.

The US followed through on its threat to hike tariffs on $200bn of Chinese goods yesterday as Beijing vowed to retaliate. With trade talks ongoing in Washington, Donald Trump added fuel to the fire by insisting that he is in no rush to resolve the

impasse. The FTSE 100 reversed early gains to edge 4.12 points lower to 7,203.29 as European markets held firm to finish in positive territory.

Thomas Cook shares gained altitude after a report revealed more bid interest for parts of the troubled package holiday giant.

Sir Richard Branson’s Virgin Atlantic has submitted a preliminary offer for its UK long-haul business, which accounts for around a fifth of its seats sold, Sky News reported.

Earlier this week, travel giant Lufthansa signalled its interest in snapping up Thomas Cook’s German carrier Condor after launching a strategic review of the airline business in February. More bid interest boosted Thomas Cook 1.4p to 22.7p, lifting its shares further away from Wednesday’s six-year low.

Commercial property giant British Land slipped towards the bottom of the FTSE 100 leaderboard after Barclays raised concerns over its exposure to the ailing retail sector. Its downgrade to “underweight” knocked British Land 14p to 570p, its lowest level in more than three months. Auto Trader was dragged off a record high as Citigroup cut the online car marketplace to “neutral”, arguing that its shares are trading above rivals in the sector. It fell 8.2p to 572.2p. Finally, distribution giant Bunzl sank to a one-year low after its long-serving finance director Brian May announced his departure after more than 13 years amid rising worries over shrinking profit margins. It dropped 65p to £21.25 as Inchcape finance chief Richard Howes was unveiled as his successor.