Daily Mirror (Northern Ireland)
GRAHAM HISCOTT Superdry’s £85m loss Scale of founder’s task revealed
ONCE booming fashion firm Superdry has slumped £85million into the red.
The business, known for its hoodies and T-shirts, has suffered a big fall from grace with its share price crashing 78% since the start of 2018.
Founder Julian Dunkerton is now back in charge after a boardroom coup which saw previous boss Euan Sutherland and others go. But results out yesterday showed the sheer scale of Dunkerton’s task.
The firm plunged from a £65m profit to an £85m loss in the year to April 27. That was mainly due to the firm taking a £130m non-cash hit relating to leases on its worst performing stores.
Overall, sales were flat at £871m, but store takings fell 3.7%.
The firm’s net cash position halved to £36m and it slashed its final dividend by almost 90%.
Analysts said the results suggested Dunkerton was “kitchen-sinking” it – getting all the bad news out in one go – in a bid to make a fresh start.
But investors weren’t convinced after its shares closed another 1.9% lower yesterday, having tanked 11% at one stage.
Dunkerton has vowed to take Superdry back to its “design-led roots” and return it to growth over a threeyear period.
He said: “Although we are only three months in, our initiatives are gaining some early traction, and I am confident we are doing the right things.”
Meanwhile, Peter Williams, who took over as Superdry’s chairman in April, denied reports a rift had developed between him and Dunkerton. “I would not have taken this on if I didn’t feel I could get on with Julian,” he said. Russ Mould, investment director at City firm AJ Bell, said: “This time next year Dunkerton will have to show much firmer signs of progress.” And Greg Lawless, an analyst at Shore Capital, added: “The reset will take time.” graham.hiscott@mirror.co.uk @grahamhiscott 020 7293 3030 Curtains and cushions chain Dunelm is on track for a profit-topping year – thanks to the wet weather.
The spring and early summer downpours drove customers into Dunelm’s stores, where sales jumped 12.1% to £205million in the three months to June 29.
Online takings leapt 37% to £39m in the same period.
It prompted Dunelm, which sponsors TV’S This Morning, to forecast that its full-year profits will be at the upper end of the £124m to £126m range announced last month.