By Reuters - April 15, 2023 | 67 4 minutes read
Struggling British fashion brand Superdry, said on Friday a potential equity raise of upto 20 percent backed by Founder and CEO Julian Dunkerton was among funding options being considered.
The group, whose shares have fallen 37 percent over the last year, also withdrew its profit guidance of “broadly breakeven” for its current year and is now forecasting revenue in the range of 615 million pounds to 635 million pounds ($771-$796 million).
Superdry, which had warned on profit in January, said retail sales in February and March, did not meet its expectations.
This was partly due to the cost-of-living crisis impacting spending and poor weather hitting demand for spring-summer items, it said.
Superdry said the performance of its wholesale division continued to lag the rest of the group.
Last month, Superdry agreed to sell its intellectual property assets in much of the Asia Pacific region to South Korea's Cowell Fashion Company (033290.KQ) for $50 million.
The deal, which is subject to shareholder approval, has the backing of Bantry Bay, Superdry's lender. Superdry also said it has also identified cost savings of over 35 million pounds.
“We need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base,” said Dunkerton.
“My belief in the Superdry brand is stronger than ever which is why I’m prepared to provide material support to any equity raise undertaken,” he added.
About Superdry
Superdry PLC was founded in 1985 and is based in Cheltenham, the United Kingdom. Superdry is engaged in designing clothing and accessories. Its product portfolio includes shirts, tops, t-shirts, polo shirts, hoods and sweats, denim, joggers, dresses, jackets, knits, shoes, bags, and accessories. It markets products under the Superdry brand name. It distributes products to customers through multiple channels, including owned stores, franchises and licenses branded stores. Apart from the physical stores, the company markets products through online portals. The company has business presence across the UK, Ireland, Belgium, France, India, Hong Kong, Germany, Spain, Austria, Belgium, Denmark and the US. Superdry is headquartered in Cheltenham, Gloucestershire, the UK.
