COVID-19: Superdry struggles with store closures

Fashion brand Superdry (LON:SDRY) has announced that it will hold a shareholder meeting on 2 April in London following the demands of its founders.

Julian Dunkerton and James Holder founded the company in 2003.

Superdry is asking its shareholders to reject Julian Dunkerton’s pledge for a seat on the company’s board. He stepped back from the fashion brand a year ago.

Julian Dunkerton’s desire to get back onto the company’s board is followed by a plan to appoint Peter Williams as a non-executive director, currently the chairman of the online fashion brand Boohoo.

“Your board recommends you vote against both resolutions at the forthcoming general meeting,” Superdry urged its shareholders in a statement.

The statement continued to read that the return of Julian Dunkerton to the business “would be extremely damaging to the company and its prospects”.

Superdry believes that his return would cause the business to pursue a strategy that would fundamentally fail. Additionally, Superdry said that his return would distract the business from its current global digital brand strategy and introduce a leadership style that would clash with the culture of the business and the management team.

The strongly worded statement affirms that Julian Dunkerton will “damage morale across the business and cause departures of key personnel, including from within the board.”

Struggling amid a difficult trading climate, Superdry saw its half-year profits fall 49% in December.

It issued a profit warning in October citing “unseasonably hot weather conditions in the UK, continental Europe and the USA” as reasons for its disappointing sales figures, causing shares to plunge almost 30%.

Its third quarter results saw a 1.5% year on year decrease in revenue, anticipated by October’s profit warning.

Superdry is not the only fashion retailer struggling amid a tough trading climate. Over the Christmas shopping season, online retailer ASOS (LON:ASC) released a shock profit warning, causing its shares to tumble.

At 14:25 GMT Monday, shares in Superdry plc (LON:SDRY) were trading at -1.53%, whilst shares in ASOS (LON:ASC) were trading at -2.12%.

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