Superdry finance boss Shaun Wills will step down at the end of March after the struggling fashion retailer reported a wider half-yearly loss.
The group blamed unusual weather and the cost-of-living crisis for an adjusted pre-tax loss of £25.3million for the six months to 28 October, up from a £13.6million loss last year.
Superdry, known for the Japanese graphics on its t-shirts and hoodies, saw revenues plummet 23.5 per cent to £219.8million over the period.
Earnings: Fashion retailer Superdry revealed adjusted pre-tax losses climbed by 86 per cent to £25.3million in the six months ending 28 October
Wills took up the CFO role in April 2021 after three years as finance director of Marks & Spencer’s clothing and home business.
He has been replaced by former McColls exec Giles David, who will join the business on 29 January and be supported by Willis until his departure.
Superdry said David ‘has a strong track record in consumer-facing businesses where he has operated successfully in turnaround environments’.
The business has struggled for some years with weaker sales and profit warnings, partly exacerbated by the Covid-19 pandemic forcing clothing shops to temporarily shut to customers.
Last August, the group took out a £25million loan from Hilco at an interest rate of 10.5 per cent and suspended trading of its shares on the AIM market after failing to publish its annual accounts on time.
The group’s revenues over the most recent half were primarily hit by the continued underperformance of its wholesale segment, which saw sales plunge by 41.1 per cent to £62.6million.
Superdry said the division’s result was largely the result of recent ‘strategic decisions,’ including the closure of its American operations, brand rights sales and stock clearance activity.
The wholesale arm was also affected by lost accounts, financial troubles at some key partners across mainland Europe, and the timing of stock intake and dispatches.
Under a turnaround programme, the Cheltenham-based firm is decreasing inventory to more efficient levels by removing aged products.
It now expects to hold approximately 7 million units by the end of this financial year, compared to a peak of 18.9 million five years ago.
Trading was more robust at Superdry’s retail operation, but sales there still dropped by 13.1 per cent following much weaker performances online and across stores.
Superdry has previously noted that demand was affected by the UK experiencing a wet summer and very mild Autumn, with the latter delaying purchases of warm-weather clothing.
The retail arm was further impacted by significant discounting from competitors and cost-of-living pressures weakening the broader retail industry.
UK retail sales fell by 3.2 per cent in December, the fastest decrease in nearly three years, according to the Office for National Statistics, as Britons bought their Christmas presents early or utilised Black Friday deals.
Superdry was among many companies to endure a problematic festive season, with the group’s revenues sinking by 13.7 per cent in the 12 weeks ending 20 January.
Julian Dunkerton, Superdry’s founder and chief executive, admitted it had ‘clearly been a difficult period,’ as he warned the firm ‘does not expect market conditions to get any easier in the near-term’.
However, he also said: ‘Despite the near-term difficulties, we have made significant operational strides over the half year as part of our ongoing turnaround.
‘Our cost savings programme remains on track, and our inventory reduction programme is progressing well.’
Superdry forecasts delivering more than £40million in excess savings this fiscal year, against a previous target of £35million.
Superdry shares slid 3.4 per cent to 16.3p on Friday morning and have plummeted by around 89 per cent over the past 12 months.
‘The latest instalment of the Superdry saga isn’t a pretty one,’ said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.
She added: ‘The area of the market that Superdry is targeting is a particularly difficult point on the spectrum. It’s not high-end enough to be considered luxury, and it’s not a bargain option either.’
