British fashion retailer Superdry foresees ongoing market challenges after a demanding Christmas season. The company reported a 13.7% decline in group sales for the 12 weeks ending January 20, citing a combination of a challenging consumer retail market, macroeconomic uncertainty, and unusual weather conditions. The CEO, Julian Dunkerton, acknowledged the impact of these factors on the group’s financial performance.
Despite the tough conditions, Superdry noted that the weak trading environment is expected to affect profitability for the full year until late April. However, the recent cold weather has provided a slight boost to sales. The company’s adjusted loss before tax for the six months ending October 28 widened to £25.3 million, although this was considered better than analysts’ estimates.
In light of these challenges, Superdry’s Chief Financial Officer, Shaun Wills, will step down at the end of March. Wills, who has been in the role for three years, previously served as CFO of Superdry’s parent firm SuperGroup until 2015. The company has appointed Giles David as its interim CFO from January 29.
Superdry’s shares, having experienced a significant decline of nearly 89% in the past 12 months, saw a marginal increase of 0.7% to 17 pence apiece at 0830 GMT. Analysts noted the impact of colder weather on the sales of outerwear, a significant segment for Superdry, but remained cautious about the company’s lingering challenges.
