LONDON: Superdry Plc plunged after warning that sales will fall in the coming months following a year of boardroom drama at the U.K. apparel chain.
Pretax profit fell 57% for the 12 months through April as the company blamed unseasonably warm weather for flat sales. The retailer, known for outerwear emblazoned with a faux-Japanese logo, issued three profit warnings over the past 12 months.
The shares fell as much as 9.5%, the biggest intraday decline since April, when founder Julian Dunkerton led a boardroom coup to return as interim CEO.
After panning the previous leadership’s lack of creative flair, Dunkerton is looking ahead to what the company described as a “year of reset,” with sales falling in a competitive and uncertain retail market. Regaining ground, the stock was down 2.3% at 9:11 a.m. in London.
“The turnaround to profitable growth will take time, especially in today’s challenging market,” Chairman Peter Williams said by phone.
Sales will fall slightly this year, but profit will increase modestly as the company reins in discounts and waits for new products to enter stores, Chief Financial Officer Nick Gresham said.
Dunkerton wants to infuse the product range with a more design-led approach. The retailer said it will also harness social media in its marketing campaigns and expand its womenswear and sports collections.
Superdry expects some store closings in the U.S. and U.K. as 40% of its leases come up for renewal over the next two years. It will also seek to renegotiate rents with some landlords, Williams said.
The company slashed its full-year dividend by 90%, to 2.2 pence. - Bloomberg
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