Superdry PLC (GB:SDRY) today posted annual losses in its fiscal year 2023 earnings after the company faced delays in publishing its numbers. A substantial shift occurred in the company’s financial performance as it transitioned from reporting statutory profits of £22.4 million in 2022 to incurring losses amounting to £148 million this year.
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The shares have been suspended from trading since this Wednesday. Overall, the Superdry share price has experienced a loss of almost 60% so far in 2023 as the company still struggles to attain a full recovery after the period of disruption caused by COVID-19.
Superdry is a global clothing brand known for its premium apparel and unique designs. The company’s product range also includes footwear, accessories, and cosmetics, which are available in stores as well as online portals.
2023 Annual Results
The group’s revenue was up by 2.1% to £622.5 million, driven by retail sales growth of 14.6%, but was offset by a 19.1% fall in wholesale revenue. The weak orders from wholesale partners amid challenging conditions delayed the recovery in this segment, also leading to cash constraints. The revenue from e-commerce increased by 14.3% as the third-party websites performed well. Store revenues also grew by 14.7%, fuelled by holiday sales.
Despite higher sales, the company posted an adjusted loss before tax of £21.7 million, down from a profit of £21.6 million in FY 22. The overall operating expenses rose by 9.6% to reach £341.7 million, primarily because of the return to standard rent in its stores, elevated energy expenses, and wage inflation.
Bleak Outlook
While the company holds a positive outlook for the sales of its Autumn/Winter collections, which are currently showing strong performance, the wholesale segment continues to pose challenges. Superdry has been actively raising funds to strengthen its financial position and has identified cost reduction as a top priority.
In the future, the company has outlined its intention to enhance cost efficiency via a £35 million cost-saving initiative. However, the company anticipates that there will not be any substantial revenue growth in the 2024 financial year.
