Superdry’s popularity as a brand peaked in the early 2010s, and its appeal has steadily declined since. So has its share price.
Indeed, the pace of the declines in Superdry shares picked up this morning after it announced soggy sales due to adverse weather during the important Autumn trading period.
The group said retail sales were down 13.1%, and its wholesale business cratered 41% as the company exited the US market.
In the face of falling sales, Superdry is scrambling to cut costs and selling assets to raise cash. Selling IP for the South Asian region netted £28.3m as the company agreed a £25m lending facility with Hilco Capital Limited.
Superdry shares were down 15% at the time of writing on Tuesday,
“Superbad news from Superdry this morning. The recent turn for the worse in the weather is not enough to rescue trading for the first half of their financial year,” said Steve Clayton, head of equity funds, Hargreaves Lansdown.
“Bad weather in recent weeks has moderated the drop in sales rates, but they remain in negative territory. The group are trying to raise cash and cut costs. Progress here has seen an initial £35m of cost savings targeted and the group has sold Asian assets for £28m. A credit facility with Hilco Capital brings access to another £25m. Overall, results are coming in significantly below management’s expectations.”
