Today’s news in brief-8/3/24

Superdry has partnered with restructuring firm Teneo to explore cost-saving measures amid financial struggles. With a reported revenue decline of 23.5% in the first half of the year to £219.8m, Superdry is considering options such as a company voluntary arrangement (CVA) or restructuring plan to navigate the challenging retail market. The company’s decision to seek external assistance follows previous reports of potential collaboration with PwC to address its financial situation.

Frasers Group has placed Matches, a luxury fashion brand it recently acquired for £52m, into administration. This decision was prompted by Matches’ failure to meet business plan targets and ongoing losses, despite Frasers’ investment. The move underscores Frasers’ commitment to the luxury market despite setbacks, as it evaluates options for the future of Matches.

Deliveroo has expanded its partnership with Screwfix, extending its services to 15 locations. Since the initial launch of their exclusive tie-up in November 2023, Deliveroo has seen potential for growth in non-food categories, particularly DIY, hardware, and tools. This expansion aligns with Deliveroo’s strategy to diversify its offerings beyond food delivery and capitalise on increasing customer demand for same-day delivery services.

Abercrombie and Fitch has reported strong financial results for the fiscal year ending February 3, with net sales reaching $4.3bn, reflecting a 16% increase compared to the previous year. The company’s gross profit rate improved by 600 basis points, reaching an operating margin of 11.3%, the highest in fifteen years. Abercrombie brands experienced a notable sales growth of 27%, while Hollister brands saw a 6% increase in sales. CEO Fran Horowitz attributes this success to the execution of their strategic plan, positioning the company for sustainable growth and aiming to reach $5bn in global sales.

Foot Locker reported a net loss of $389m for the fourth quarter, marking a significant decline from the previous year’s net income of $19 million. Despite a 2% increase in total sales to $2.38 billion, comparable sales fell by 0.7%. CEO Mary Dillon attributed the loss to non-cash charges and efforts to reposition the Champs Sports fascia. Despite challenges, Foot Locker remains focused on its transformation into a modern, omnichannel retailer, emphasising brand partnerships, customer engagement, and digital growth initiatives.