Fashion chain Superdry has reported a statutory loss of £148m over the past 12 months.
The Gloucestershire-based retailer released its annual results on Friday (September 1) following a delay when earlier this week (August 30) the board announced the suspension of trading in shares after failing to file results.
The group, which has been struggling for some months, recorded an increase of revenue by 2.1% to £622.5m with growth in stores and ecommerce of 14.7% and 14.3% respectively.
Superdry saw a 19.1% decline in wholesale, which bosses said was due to a "build-up" of inventory over the pandemic and "slower uptick" in partner confidence driving weaker performance. The delayed recovery in the wholesale sector and return to normal rent and business rates resulted in an adjusted loss before tax of £21m.
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The retailer announced a statutory loss before tax of £148m, which bosses said was mainly due to accelerated non-cash impairments of store assets of £43.3m, a non-cash reduction in the recognised deferred tax assets of £66.3m in 2022 to £nil in 2023, and "other adjusting items".
Bosses said that actions to improve the balance sheet continue. These include IP sale and equity raise together yielding approximately £45m after the year-end, alongside a cost saving programme to deliver £35, to be fully realised by end-of-year 2024.
In December 2022 Superdry agreed a loan facilities with Bantry Bay Capital for up to £80m. In August 2023 Superdry said a further £25m facility with Hilco Capital had been agreed post year end.
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Julian Dunkerton, founder and chief executive, said: “This has been a difficult year for the business and the market conditions have been extremely challenging, especially in Wholesale. We’ve looked closely at how we operate and have taken decisive actions to improve our position, rebuild liquidity, and recapitalise our balance sheet, through careful preservation of cash and a re-engineered cost base.
“The good news is that despite the external turbulence, the brand is in sound health and has momentum. Stores and Ecommerce delivered a strong sales performance, and I’m excited by our collections for the Autumn/Winter 23 season. While Wholesale remains very challenging, I believe the new team in place will recover this business in the medium-term. I’m really excited by our new partnership in Asia, finalised after year-end, which not only has helped rebuild our balance sheet but will ensure Superdry can achieve its potential as a truly global brand."
Mr Dunkerton added: “I’d like to thank all our team for their commitment during a period of change for the business. The start to the new year has been tough, not helped by unseasonal weather and highly promotional markets, and I’m not expecting the consumer environment to become any easier soon. However, the actions we have taken and continue to take to ensure the health of the business, give me more confidence as we look into the future.”
Superdry's chair, Peter Sjolander, said: "Whilst there have been some positive developments over the course of the year, such as some of the encouraging trends seen within our Stores and Ecommerce channels, the notable underperformance of our Wholesale division resulted in pressure on our cashflow, profitability and liquidity.
"Wholesale is an extremely important and productive channel to market as it requires lower levels of capital investment to support growth, however its performance continues to lag the rest of the Group. This was especially the case in mainland Europe, which accounts for almost 60% of our Wholesale revenues, and where performance was especially weak. This underperformance, combined with the challenging trading environment, left the business significantly cash constrained."
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