Cost savings at Superdry have little effect in first half of year, CFO to exit

Superdry plc is continuing to face a turbulent financial period. The British fashion company revealed in its half-year update that sales fell 23.5 percent, with a challenging consumer retail market, weather and lagging impacting the wholesale stream. Such concern had previously been predicted by Superdry, however, with the company having already issued a profit warning for this year in December 2023, and selling its brand rights in the US and the Middle East.

As such, Superdry's sales came to 219.8 million pounds in the period up to 28 October 2023, completing the first half of 2024. Sales within retail fell by 13.1 percent, while wholesale sales narrowed by 41.1 percent. Here, structural changes in the market played a role. Strategic decisions, such as the termination of operations in the US, the sale of brand rights and ongoing clearance sales, also had a major impact here.

Not only are sales falling, Superdry is also seeing its adjusted loss before tax worsen. The British fashion company posted a pre-tax loss of 25.3 million pounds in the first half of the year, almost doubling its red figures. In the same period a year earlier, the pre-tax loss was 13.6 million pounds. On the bottom line, Superdry therefore recorded a loss of 28.9 million pounds. That is 10.9 million pounds less than a year earlier.

The narrowed loss is still below target, but does show evidence that the measures taken are paying off. Total operating costs fell 16.1 percent due to significantly lower costs in sales and distribution, and central costs. Superdry therefore shared in the update that it would continue to focus on reducing costs. The company aims to save 40 million dollars in the full financial year.

CFO Superdry leaves

Just as the company is managing to cut its costs, a separate statement by Superdry announced that its chief financial officer, Shaun Wills, would be leaving the company from 31 March 2024. Giles David will temporarily take over the CFO role, joining from 29 January. David will also join the board of directors from 1 April.