Superdry has been forced to adjust its profit guidance for the current year following lower than forecast demand in February and March. It says it now expects revenue of between £615m – £635m for the full year and is now embarking on further cost-saving measures as well as considering an equity raise.
Targeted cost savings amounting to £35m are expected to be achieved through a mix of store closures, improved procurement and across its distribution and logistics functions. The retailer will also look to streamline its ranges.
CEO Julian Dunkerton said; “The Superdry brand continues to evolve but there is no doubt that the market conditions we face are challenging, compounded by the issues we have previously disclosed and working to address in wholesale. As a result, while we continue to deliver like-for-like growth in retail sales, we need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base.
“My belief in the Superdry brand is stronger than ever which is why I’m prepared to provide material support to any equity raise undertaken. I am confident that we have the right plan and, working together as a team, the business will emerge from the current turbulence stronger than ever.”