Superdry boss battles to return

SUPERDRY chief executive Euan Sutherland will come under renewed pressure on Wednesday, when he is expected to say that its profits have tumbled 60 per cent.

Analysts believe that Superdry will say that its interim pre-tax profits, excluding one off items, have collapsed, down from £25.2 million to £10 million. Sutherland is likely to blame the hot, dry summer and foreign exchange costs for the collapse in its profits.

The management of Superdry, famed for its Japanese inspired slogans and imagery on its clothing, is under pressure from founder Julian Dunkerton, who is campaigning to return to the board and overhaul its strategy.

City broker Cenkos has been working with Dunkerton to canvass support among leading shareholders for his return and sources close to the situation say he has received a sympathetic hearing. It is thought that City investors will wait until they have seen Superdry’s third quarter trading update in February before deciding whether they should back Dunkerton or not. On Thursday Sports Direct founder Mike Ashley will update the City on the sport’s retailer’s acquisition of House of Fraser at its interim results. So far the billionaire has saved 23 out of its 59 stores but has said that at least 12 of them are likely to close.

Excessive business rates have been blamed by Ashley and others for the crisis facing the retail sector, which prompted Chancellor Philip Hammond to announce £900 million of relief over the next two years for nearly 500,000 small stores.

However according to an analysis of official data by property consultant Altus, 300,000 of those small stores are already exempt from paying business rates. Altus head of UK business rates Robert Hayton said: “The Budget measures show little thought about where taxpayer money would be best spent and does nothing to help those major retailers who are reducing their store portfolios and headcount, often citing high rates as a contributory factor.”