Superdry’s £85m loss
Scale of founder’s task revealed
Dunkerton is ‘kitchen sinking’ it, getting bad news out
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 per cent since the start of 2018.
Founder Julian Dunkerton is now back in charge after a boardroom coup which saw the previous boss, Edinburgh-born Euan Sutherland, and others go. But results out yesterday showed the sheer scale of Dunkerton’s task.
The firm plunged from a £65million profit to an £85million loss in the year to April 27. That was mainly due to the firm taking a £130million non-cash hit relating to leases on its worst performing stores.
Overall, sales were flat at £871million, but store takings fell 3.7 per cent.
The firm’s net cash position halved to £36million and it slashed its final dividend by almost 90 per cent.
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 per cent lower yesterday, having tanked 11 per cent at one stage. Dunkerton has vowed to take Superdry back to its “design-led roots” and return it to growth over a three-year 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, of 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.”