Superdry PLC on Friday withdrew its profit guidance for fiscal 2023, citing the challenging environment and after experiencing slower-than-expected retail sales, and said it is considering an equity issue to strengthen its balance sheet.
The British clothing brand SDRY, -18.07% said it is considering an equity issue for up to 20% of its share capital, which would be supported by founder and Chief Executive Julian Dunkerton.
“My belief in the Superdry brand is stronger than ever which is why I’m prepared to provide material support to any equity raise undertaken. I am confident that we have the right plan and, working together as a team, the business will emerge from the current turbulence stronger than ever,” Mr. Dunkerton said.
Superdry had expected broadly break-even adjusted pretax profit for the year ending in April. It said Friday that revenue for the year is expected to be between 615 million and 635 million pounds ($770.2 million to $795.3 million) compared with GBP609 million in fiscal 2022.
Superdry said that retail sales in February and March were up on a like-for-like basis, but missed the board’s expectations. It blamed outside factors for the lower growth, including the cost of living crisis, poor weather and lower demand for its new spring/summer collection.
Superdry said it has made progress with its wholesale partners to support their recovery but sales performance continues to be challenging.
The company said it has identified GBP35 million of cost savings, which are expected to be realized by the end of fiscal 2024 and subsequently materially boost medium-term underlying profitability.
Write to Ian Walker at [email protected]
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