Superdry store. Image Source: Superdry.com
Superdry stock has dropped by roughly 15% as of last Friday, January 27, 2023. The UK clothing chain warned its backers that despite benefiting from a boost in sales during the busy Christmas and Black Friday periods, revenue for the full year is expected to break about even.
After suffering setbacks due to shipping delays and other post-pandemic problems, the company has stated revenue for the wholesale business has dipped by almost 60% in the past two months. This has forced the retail chain to adjust and downgrade its expected pre-tax profits just in order to break even. Superdry currently has over 200 shops and more than 400 outlets worldwide, nevertheless, they are having a hard year due to diminished customer spending and rising costs.
2021 began promisingly as Superdry’s net revenue was up 3.5% in the first half of the year, climbing from £277 million to £287 million. The company also enjoyed a solid Christmas season, with Black Friday being one of their biggest weeks ever sales-wise. Coats and jackets were the obvious top sellers throughout the Christmas holiday period, with winter weather outerwear and womenswear, in particular, being in high demand. In the lead-up to Christmas, year-on-year revenue numbers had risen by around 20%, however, these figures have dropped significantly since then.
Superdry’s chief executive and board of directors remain united and are optimistic that they will use this economic downturn to strengthen themselves going forward. Julian Dunkerton, the Founder and Chief Executive Officer (CEO) of Superdry, explained that the problems were mainly due to the underperformance of wholesale. He added that the company was in the process of reorganizing its team and its approach to supporting the wholesale partners and expected to see their confidence return following the retail success of autumn/ winter 2022. After re-organizing its team structure and brand identity, the UK clothing company is now confident of a return to commercial and financial success in the upcoming months.
However, the potential for their success in 2023 will ultimately come down to a number of factors predominantly outside their control. Factors such as the conditions of the market, economic stability, and customer spending, will all play a major role moving forward. This past month, Superdry also confirmed that it had received some £80 million more in refinancing for the next three years, overhauling a £70 million incentive due to end this month.
Spring will undoubtedly be a critical quarter for the retailer as they continue to cut costs across the board. Despite the setbacks, Superdry remain confident that customers will continue to be attracted to their design brands, in the face of tightening budgets worldwide.
Superdry store. Image Source: Superdry.com
Superdry stock has dropped by roughly 15% as of last Friday, January 27, 2023. The UK clothing chain warned its backers that despite benefiting from a boost in sales during the busy Christmas and Black Friday periods, revenue for the full year is expected to break about even.
After suffering setbacks due to shipping delays and other post-pandemic problems, the company has stated revenue for the wholesale business has dipped by almost 60% in the past two months. This has forced the retail chain to adjust and downgrade its expected pre-tax profits just in order to break even. Superdry currently has over 200 shops and more than 400 outlets worldwide, nevertheless, they are having a hard year due to diminished customer spending and rising costs.
2021 began promisingly as Superdry’s net revenue was up 3.5% in the first half of the year, climbing from £277 million to £287 million. The company also enjoyed a solid Christmas season, with Black Friday being one of their biggest weeks ever sales-wise. Coats and jackets were the obvious top sellers throughout the Christmas holiday period, with winter weather outerwear and womenswear, in particular, being in high demand. In the lead-up to Christmas, year-on-year revenue numbers had risen by around 20%, however, these figures have dropped significantly since then.
Superdry’s chief executive and board of directors remain united and are optimistic that they will use this economic downturn to strengthen themselves going forward. Julian Dunkerton, the Founder and Chief Executive Officer (CEO) of Superdry, explained that the problems were mainly due to the underperformance of wholesale. He added that the company was in the process of reorganizing its team and its approach to supporting the wholesale partners and expected to see their confidence return following the retail success of autumn/ winter 2022. After re-organizing its team structure and brand identity, the UK clothing company is now confident of a return to commercial and financial success in the upcoming months.
However, the potential for their success in 2023 will ultimately come down to a number of factors predominantly outside their control. Factors such as the conditions of the market, economic stability, and customer spending, will all play a major role moving forward. This past month, Superdry also confirmed that it had received some £80 million more in refinancing for the next three years, overhauling a £70 million incentive due to end this month.
Spring will undoubtedly be a critical quarter for the retailer as they continue to cut costs across the board. Despite the setbacks, Superdry remain confident that customers will continue to be attracted to their design brands, in the face of tightening budgets worldwide.
