Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Superdry Share Price: Profits Plunge, Uncertainty Continues

By CMC Markets (David Madden)Stock MarketsJul 10, 2019 10:11
Superdry Share Price: Profits Plunge, Uncertainty Continues
By CMC Markets (David Madden)   |  Jul 10, 2019 10:11
Saved. See Saved Items.
This article has already been saved in your Saved Items

Superdry shares sold-off this morning after the company posted a 56.8% fall in underlying full-year profit before tax. Revenue was largely flat on the year and the retail environment was described as ‘difficult’. To make matters worse, the outlook for the fashion house doesn’t inspire confidence. The retail sector remains ‘highly competitive’, and the outlook continues to be ‘uncertain’. The firm has undergone major changes in terms of management in 2019, and the business issues ‘will not be resolved overnight’. Despite the poor performance, the group is confident it is doing the right thing to return to high profitability. The fact the dividend remains unchanged suggests the company is confident in its ability to turn itself around, as the dividend is usually the first to go when a firm is fearful about the future.

Superdry PLC (LON:SDRY) has had a rough ride recently as a string of profit warnings and a major management shake-up chipped away at investor confidence. Many in the retail sector have complained about a fragile consumer environment, and the problems that Superdry are having are making matters worse. A dreadful share price performance in 2018 prompted the founder, Julian Dunkerton, to get back involved in the company, after he stepped down from the board in the first-half of 2018.

In April 2019, Mr Dunkerton was readmitted to the board of directors and that triggered a mass resignation of directors. Since the return of the group’s founder, the Superdry share price has stabilised, but it remain under pressure.

In May, the group issued a profit warning – its third in one year. The fashion house had an underwhelming performance in the 13 weeks until late April as online and wholesale revenues dropped by 3.9% and 9.3% respectively. It is particularly disappointing that online sales are falling seeing as there has been a huge surge in online sales in recent years - that’s the reason high streets are struggling.

Superdry has introduced a few changes to try and buck the trend of the poor performance. It will ramp up the number of products available online, and it will cut back on the number of unnecessary discounts. Offering promotions has been a popular strategy across the entire retail sector, but more often than not it is the customer who wins, and not the shareholder.

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original Post

Superdry Share Price: Profits Plunge, Uncertainty Continues

Related Articles

Superdry Share Price: Profits Plunge, Uncertainty Continues

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email