By Michael Susin
Superdry, the British clothing brand, has issued a warning about the persistently difficult and unpredictable market conditions. The company reported a decline in revenue for the first half of fiscal 2024 and announced that its chief financial officer will be stepping down.
In the six months ending October 28, Superdry experienced a 23.5% drop in revenue, totaling £219.8 million ($279.3 million). The decline in sales was attributed to unusually warm weather and underperformance in the wholesale segment.
Despite the overall decrease in revenue, the company managed to achieve a pretax profit of £3.3 million, compared to a loss of £17.7 million during the same period last year. This improvement was largely driven by the sale of intellectual property in the Asia and Pacific region. However, when adjusted to exclude exceptional and one-off items, Superdry's pretax loss widened to £25.3 million from £13.6 million.
For the 12-week period ending January 20, Superdry reported a 14% decrease in revenue. The company attributes this decline to milder weather conditions and heavy discounting across the sector impacting Christmas sales.
Superdry remains committed to its ongoing turnaround program, focusing on enhancing efficiency, streamlining operations, and establishing a target operating model. However, the company acknowledges that it expects its full-year results to reflect the challenging business environment it has been facing thus far.
Additionally, Superdry announced that its Chief Financial Officer, Shaun Wills, will be stepping down from his position effective March 31. Giles David will take over as interim CFO, joining the company on Monday and is expected to join the board on April 1.