Proactive Investors - Superdry PLC (LON:SDRY) shares can be returned from suspension after the clothing retailer reported final results, which showed a big swing to losses despite growth in-store and online sales.
The seller of faux-Japanese fashion to middle-aged dads and undercover police officers saw statutory profits of £22.4 million in 2022 swing to a losses of £148 million for the past year, with underlying trading also swinging to a £21.7 million loss from a similar sized profit.
In April the company said it expected to “broadly breakeven”. https://www.proactiveinvestors.co.uk/companies/news/1012131/superdry-plummets-after-warning-on-profits-1012131.html
Revenue increased 2.1% to £622.5 million as 17.4% growth in stores and 14.3% in ecommerce was offset by a 19.1% decline in wholesale blamed on a build-up of inventory over the pandemic and slower uptick in “partner confidence”.
Net debt ended the year at £25.6 million, up from £1 million, with £22.4 million of cash.
Founder Julian Dunkerton, who returned as chief executive in 2019 to rescue the business after a succession of profit warnings, said it had been “a difficult year for the business and the market conditions have been extremely challenging”.
He said “decisive actions” have been taken to “improve our position, rebuild liquidity, and recapitalise our balance sheet, through careful preservation of cash and a re-engineered cost base”, with £35 million of cost cuts expected to be fully realised in the current year, and that the Superdry brand “is in sound health and has momentum”.
However, wholesale remains “very challenging” but he believes the new management team will lead a recovery in the medium-term.
Weather across UK and Europe was blamed for hitting the Spring Summer collection but has helped the new Autumn Winter collection, which is "selling better" than usual.
For the full year, no significant revenue growth is seen with the main focus on cost savings and margin improvement.
The shares were suspended earlier this week at 56.1p as publication of the results was delayed by work with auditor RSM.