A disappointing set of results has left investors apprehensive about the future of Superdry and its founder and CEO, Julian Dunkerton.
Dunkerton, who owns his flagship store on London’s Oxford Street, believes that the famous shopping district needs to be revitalized.
When the chaos on Oxford Street is resolved, I will be relieved. This store that I own does wonderfully. No one can convince me otherwise that we are succeeding, he continued.
Recently, Dunkerton stated that Oxford Street requires “serious help” in order to continue functioning as a shopping district.
American Candy Stores are on the rise, which has contributed to an increase in retail vacancy. He suggests that business rates be revised and the street be made pedestrian-only.
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In 2019, Dunkerton made a shocking comeback to the company, angry at what management had done to the company he had founded and considered a member of his family.
Since then, the company’s stock price has continued to fall, and his attempt to restructure the business has been hampered by problems with Covid and the economy.
The auditor’s mistake had already delayed today’s results for the year up to April, which didn’t do much to improve the company’s image in the City. While the books were being finalized, the shares were frozen.
Superdry lost £148 million, down from previous profits of £22 million. Adjusted losses are substantially lower at £22 million, although the former figure may still frighten investors.
Despite stable sales (up 2% to £622 million), the company is nevertheless losing money. If prices can be reduced, a company with those kinds of sales figures may really take off.
Debts have increased by £25 million, from £1 million.
Dunkerton lamented, “The firm has had a rough year, and the market has been tough everywhere, but notably in Wholesale. Through vigilant cash conservation and a redesigned cost structure, we have taken decisive measures to strengthen our position, restore liquidity, and recapitalize our balance sheet.
With the share price frozen at 56p, the company is worth £55m. The company’s stock market valuation peaked at £1.6 billion when it was at the height of its success and its logo-emblazoned clothing was ubiquitous.
When asked about speculation that Superdry would temporarily delist itself from the stock exchange, the company had no response.
There was also backlash when the company branched out into children’s clothing and other markets where the brand didn’t belong since the items grew too dependent on the logos.
After Dunkerton successfully orchestrated his return, the whole board, including former CEO Euan Sutherland, resigned in protest. Dunkerton claimed that such critics lacked insight into the fashion industry as a whole and his company specifically.
Superdry, a Cheltenham, UK–based “cult” clothing brand established in 1985, was popular due to its “street” vibe. More shops appeared, particularly in college areas.
Dunkerton made an effort to project an upbeat attitude. He continued, “I don’t expect the consumer scenario to become much easier anytime soon, given the start of the new year has been harsh, not helped by unseasonal weather and highly promotional marketplaces. But the things we’ve done and are doing to safeguard the company’s future success fill me with optimism.
There are 620 Superdry outlets total, with the corporation owning 213.
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