Superdry sales dented by warm weather amid boardroom row
The fashion chain also pointed to ‘ongoing legacy product issues’.
Superdry has blamed “unseasonably warm weather” for a dip in third quarter sales as the troubled retailer continues to struggle amid a boardroom bust-up.
Weekly Business Digest Newsletter
The fashion chain saw group revenue fall 1.5% to £269.3 million in the 13 weeks to January 26, with store sales tumbling 8.5% and online dropping 0.7%.
Superdry also pointed to “ongoing legacy product issues” in explaining the decline.
Chief executive Euan Sutherland said: “Superdry’s performance has remained subdued during quarter three.
“We continued to be impacted by the ongoing product mix and relevance issues we have previously highlighted and by the lack, until the end of quarter three and the start of quarter four, of any prolonged period of cold weather in our key markets.”
The lacklustre figures come following a December profit warning that knocked the firm’s shares.
Superdry is also embarking on a transformation plan that aims to slash £50 million of costs by 2022, increase product diversification and “evolve the brand”.
But the group is also grappling with a boardroom bust-up between the current management and co-founder Julian Dunkerton, who is trying to stage a comeback at the company.
Mr Dunkerton said the latest results were a “damning indictment of Superdry’s misguided strategy”.
“The current strategy is failing dismally, as I predicted it would,” he said. “Compared with the group’s peers, who have been exposed to the same external factors, these numbers are very disappointing.”
Last month he declared his intention to call a shareholder meeting to vote on his reinstatement by mid-February.
In better news for the fashion group, brand revenue was up 5.4% to £479.6 million in the quarter, driven by the wholesale division, which saw sales rise 12.7% to £73.5 million.
“We are pleased with the early progress being made with our transformation programme, designed to reset the business and deliver a return to higher levels of growth and profitability,” Mr Sutherland added.