The Superdry PLC (LON: SDRY) share price plunged 20.1% after releasing its H1 2023 financial results from 1 May 2022 to 29 October 2022 and its performance over the nine weeks from 30 October 2022 to 31 December 2022.
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The company noted that while its sales had improved due to strong demand from customers who returned to high street shops during the holiday shopping period, its underlying profits were affected by lower retail margins and a slump in wholesale sales. Hence, the fashion retailer had to lower its full-year forecast to break even.
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Investors were unhappy to see Superdry lower its full-year profit forecast from the previous range of £10 – £20 million to breakeven, which triggered today’s decline. The company’s H1 revenues rose 3.6% to £287.2 million from £277.2 million.
However, Superdry’s pretax adjusted loss rose to £13.6 million from £2.8 million. The fashion retailer reported increased demand for denim, womenswear and jackets, despite a 5.2% decline in its wholesale sales due to a slow recovery after the COVID-19 pandemic.
The fashion company was proud to announce that it had been recognised for its efforts to make Superdry the ‘#1 Sustainable Style Destination’ by being given an A rating by the CDP as one of only two British fashion brands that were on the ‘A List’ this year.
Julian Dunkerton, Founder and Chief Executive Officer, said: “The Superdry brand has real momentum, and I’m delighted by how our retail trading continues to strengthen. We’ve done this against a difficult macroeconomic backdrop by delivering well-designed, affordable, and responsibly sourced products which have resonated well with customers. Our coats performed really well in the run-up to Christmas, and womenswear continues to be a highlight for us. Stores continued to recover strongly, and online had its biggest ever week over Black Friday, helped by our new e-commerce platform, which is delivering real benefits.”
Superdry attributed its losses to a return to normal rents and rates after the COVID-19 relief measures lapsed, combined with a 3.1% contraction in its overall margins.
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The Superdry share price chart.
The Superdry share price plunged 20.08% to trade at 119.0p, from Thursday’s closing price of 148.9p.
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