Superdry says it now expects FY23 revenue to be in the range of £615-£635m ($769-794m) from £609m the same period a year earlier. The Superdry board has also withdrawn existing profit guidance of “broadly breakeven” for FY23.
The company noted wholesale performance continues to lag the rest of the group, although it says it is making progress in working with partners to support their recovery.
On its turnaround plan, Superdry says it has identified initial cost savings of over £35m which have been externally validated. These will be achieved through estate optimisation, logistics and distribution savings, better procurement, and continued range reduction. The company expects these savings to be fully realised by the end of FY24, with the costs to achieve them primarily incurred in calendar year 2023. The company is currently reviewing further re-engineering options to deliver additional savings. As a result of these actions, the company expects to deliver a material uplift in underlying profitability over the medium term.
At the end of last month, Superdry agreed to sell its intellectual property (IP) assets in the Asia Pacific region to South Korea’s Cowell Fashion Co in a £40.7m ($50m) deal.
Earlier in March the company engaged financial advisory business, Interpath Advisory on-board to support its efforts in slashing costs.
Julian Dunkerton, founder and chief executive officer, 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 are 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.”