Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Superdry profits plunge

Superdry plans to step up its transformation programme, which includes launching kidswear and licencing, after announing crumbling profits, down 49% for the 26 weeks to 27 October 2018.

Underlying profits before tax were down to £12.9m for the period, compared to £25.3m in the same period last year

The drop was blamed on “unseasonably warm” weather throughout the year, as well as a weakening, discount-driven market.

The brand cautioned that the negative impact of the warm weather is set to continue into November and December. November profits are expected to take an £11m hit, with similar negative impacts expected in December, while overall profits for the year are anticipated to range between £55m and £70m.

Global brand revenue rose 6.4% to £831.8m for the period, with total group revenues edging up 3.1% to £414.6m.

As a result of the knock to profits, Superdry is set to accelerate its transformation plans. This includes an 18-month innovation and diversification programme on product, including the launch of licencing and kidswear early next year.

A review of Superdry’s store portfolio is also set to be completed by March 2019. 

Commenting on the results, chief executive Euan Sutherland said: “Superdry had a difficult first half, impacted by unseasonably warm weather across our major markets, a consumer economy that is increasingly discount driven and the issues we are addressing in product mix and range.

“Superdry is responding to its internal challenges as well as a changing world and changing consumers. Our comprehensive transformation will ensure Superdry is well positioned as we optimise our routes to market and make our business more efficient.”

The results come after mounting criticism of the brand’s strategy from founder Julian Dunkerton, who criticised its approach in a note to the City this week, having previously warned that the retailer is “on the wrong path”.


Readers' comments (1)

  • Listen to Julian Dunkerton! As founder he knows the Superdry brand better than anyone.
    Can see same situation happening at Jack Wills with new management team ignoring (at their peril) founder Peter Williams’ advice

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.