Struggling Superdry has swung into the purple, reporting an £85.4m annual loss and warning it expects revenues to fall within the present “reset” yr.
The style retailer, which had issued three revenue warnings within the run-up to a delayed set of figures for the yr to 27 April, has endured a tumultuous time by way of buying and selling and within the boardroom.
A bitter row between administration and co-founder Julian Dunkerton over Superdry’s path resulted in a shareholder vote that noticed him swept again in April – prompting the manager management staff to give up.
He had warned when he took the job as interim chief government in April that his turnaround plans, mainly restoring a design-led tradition, would take time – particularly within the powerful retail surroundings that has seen customers shrink back from the excessive avenue.
The corporate reported flat group income for the previous yr of £872m – with a “poor efficiency” within the second half throughout its enterprise dragging on the determine.
Underlying pre-tax earnings – reflecting day-to-day buying and selling profitability – was 57% down on the earlier 12 months at £42m and harm by discounting to draw buyers.
It blamed its backside line lack of £85.4m on a beforehand introduced non-cash cost of virtually £130m referring to onerous leases and different impairments.
Superdry stated it didn’t see any nice restoration forward.
The corporate warned: “Regardless of early, albeit small constructive outcomes from new initiatives throughout the retail channel, we anticipate group income to indicate a slight decline in FY20, significantly within the first half, as we rebalance promotional exercise and strengthen the model.
“World retail markets are anticipated to stay extremely aggressive and the buyer outlook continues to be unsure, together with the continued uncertainty of the influence of Brexit
“Given the size of the buying and selling downturn in FY19 and the lead occasions required to rectify the product vary and proposition, administration view FY20 as a yr of reset.”