Struggling UK branded clothing company, Superdry, has recorded a major annual loss of £85.4m (€94.9m) during the last year, with warnings that it expects revenues to fall even further in the coming year.
The fashion retailer has had a troublesome time over the past year, in both trading and administration, after a quarrel between management and co-founder Julian Dunkerton about the company’s direction ended up with a shareholder vote that led to Dunkerton being re-elected as a member of the board. This decision led to the executive leadership team to drop out of the company.
Upon his return to the firm, Dunkerton said that his priority was to “steady the ship and get the culture of the business back to the one which drove its original success.”
Dunkerton issued a statement on Wednesday in which he said that Superdry recorded a statutory pretax loss of £85.4m (€94.9m) for the year up until last April 27. This is shocking when compared to the profit made in the 2017-18 period of £65.3m (€72.6m).
Furthermore, Superdry’s shares have plunged by 66% over the last year, and the company warned everyone that “The issues in the business will not be resolved overnight.”
When Dunkerton assumed the role of interim chief executive back in April, he had warned that his plans to turn the performance of the company around would take time, as he aimed to restore the company’s design-led culture.
During the last year, the company’s store sales went down by almost 4%.
The company does not see the situation improving in the very near future, with company officials warning the public that “Despite early, albeit small positive results from new initiatives across the retail channel, we expect group revenue to show a slight decline in FY20, particularly in the first half”. However, there are signs of positivity, as the company is seeking to “rebalance promotional activity” as well as “strengthen the brand”.
Dunkerton told investors that even though the initiatives have only been in place for three months, he is “confident” that the company is doing the “right things to ensure that over time Superdry will return to its strong profitable growth.”
Superdry currently has over 500 branded locations in 46 different countries around the world.
The 34-year-old company is set for a long period of transition, as it strives to recoup this year’s losses over the coming years.