Struggling fashion retailer Superdry has reported a bigger-than-expected annual loss – and is warning it expects little revenue growth in the current financial year.
The British brand says a cost of living crisis, coupled with a fall in real wages, has contributed to weaker sales.
And the company – whose fashion line mainly includes sweatshirts and hoodies – says its performance has been affected by extreme weather in Europe.
Revenue for the three months to July fell by 18.4%, with Superdry saying there was lower demand for its spring/summer collection.
However, the company told investors that its latest autumn/winter range is selling better than it usually would at this time of year.
The chain ended the year to 29 April with an adjusted pre-tax loss of £21.7m, compared with a profit of £21.6m the year before.
‘Extremely challenging’ conditions
Superdry had delayed the publication of its annual report yesterday – and asked for shares to be suspended until results were released.
“This has been a difficult year for the business and market conditions have been extremely challenging,” CEO and founder Julian Dunkerton said.
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For now, Superdry is raising funds in an attempt to shore up its finances – and says cutting costs is a priority.
Trading remained suspended on Friday – and so far this year, Superdry’s share price has plunged by 58%.
