Superdry at a loss, but "happy with progress"

Superdry at a loss, but "happy with progress"

In the first half of its financial year, Superdry saw its turnover fall and its profit drop into a loss. Nevertheless, CEO Julian Dunkerton said he was "satisfied with the progress" that his fashion chain has made.

 

 

Fewer discounts

During the first six months of its financial year, Superdry's turnover fell by 11 % to 369.1 million pounds (440 million euros). The company issued fewer discounts in order to increase profit margins, but this choice had an impact on revenue. As a result, the company recorded a loss of 4.2 million pounds (5 million euros), partly as a result of negative currency effects but also due to the introduction of a new accounting standard (IFRS 16). In the same period last year, there was still a profit of 26.4 million pounds.

 

"At this halfway point in our financial year, I am pleased with the progress we have made to comprehensively reset Superdry", Dunkerton said in a press release. "We are only eight months into a process that will take two to three years, but I have great confidence in the strength of our new executive leadership team".

 

In April of this year, Dunkerton - who founded Superdry in 2003 - made a comeback as CEO of the fashion company he had left a year earlier. After Superdry announced heavy losses in July, the CEO stated that he wanted the brand to go back to its roots: more of a focus on design, product quality and a customer-focused retail approach.