Superdry Cuts FY 2023 Profit Guidance After Swing to 1H Pretax Loss

By Joe Hoppe

Superdry PLC said Friday that it swung to a pretax loss in the first half of fiscal 2023 though revenue rose, and lowered its full-year profit outlook.

The British clothing brand’s pretax loss for the 26 weeks ended Oct. 29 was 17.7 million pounds ($22.0 million) compared with a profit of GBP4.0 million for the same period a year earlier. The company said this reflects a normalized cost base coupled with a slow start to the first quarter and a delayed recovery in wholesale, despite an underlying recovery.

Revenue rose to GBP287.2 million from GBP277.2 million for the year-earlier period.

Due to underperformance of its wholesale division and increasing uncertainty over the fourth quarter, Superdry cut its fiscal 2023 adjusted pretax profit outlook to be broadly breakeven, from previous guidance of a GBP10 million to GBP20 million profit.

Regarding its performance for the 9 weeks to Dec. 31, the London-listed company said demand continued to strengthen, with stores back to 2019 levels in December and retail revenue up 25%.

“We don’t expect market conditions to become easier any time soon, but with a new financing package in place and the brand in great health, we approach the year ahead with optimism,” founder and Chief Executive Julian Dunkerton said.

Write to Joe Hoppe at [email protected]

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