Superdry falls to £148m loss in FY23
While Superdry’s revenues grew 2.1% to £622.5m in FY23 due to a 14.7% store revenues increase, its retail growth was offset by a 19.1% decline in wholesale
Superdry swung to a loss of £148.1m in the year ended 29 April, down from a profit of £22.4m the prior year.
As a result, the retailer has agreed a loan with Bantry Bay Capital for up to £80m this year, and a further £25m with Hilco Capital post year-end.
The group attributed its losses to “accelerated” non-cash impairments of store assets of £43.3m, a non-cash reduction in the recognised deferred tax assets from £66.3m at FY22 to no balance in the current year, as well as other adjusting items.
While Superdry’s revenues grew 2.1% to £622.5m in FY23 due to a 14.7% store revenues increase in the US and UK, its “robust” retail growth was offset by a 19.1% decline in wholesale due to the continued impact of cautious outlook from partners.
In addition, the delayed recovery of wholesale and the return to normal rent and business rates post-Covid have impacted the group’s underlying profits, which resulted in an adjusted loss before tax of £21.7m.
Nonetheless, the retailer’s ecommerce revenues grew 14.3% thanks to third-party site performance and its “best” Black Friday event.
As a result, the group has set in motion actions to improve its balance sheet, including IP sale and equity raise together yielding roughly £45m after year-end, alongside a cost saving programme to deliver £35m in FY24.
Julian Dunkerton, founder and CEO of Superdry, said: “This has been a difficult year for the business and the market conditions have been extremely challenging, especially in Wholesale.
“The good news is that despite the external turbulence, the brand is in sound health and has momentum. Stores and ecommerce delivered a strong sales performance, and I’m excited by our collections for the Autumn/Winter 23 season. While Wholesale remains very challenging, I believe the new team in place will recover this business in the medium-term.”
He added: “I’d like to thank all our team for their commitment during a period of change for the business. The start to the new year has been tough, not helped by unseasonal weather and highly promotional markets, and I’m not expecting the consumer environment to become any easier soon.”
