Superdry’s Sales Drop Force CFO Shaun Wills to Depart

Shaun Wills, who has held the position of Superdry’s CFO for three and a half years, has opted to step down from the board and will bid farewell to the company by the end of March 2023. Stepping into his shoes is Giles David, known for his adept handling of consumer-facing businesses and successful navigation of turnaround scenarios, evident from his past roles at McColls and the Casual Dining Group.

The company’s financial woes stem from challenging market conditions and atypical weather patterns, resulting in a noteworthy 23.5% year-on-year plunge in group sales during the six months leading up to October 28, 2023.

David’s wealth of experience in consumer-facing enterprises positions him favorably to guide Superdry through the critical transition it faces. Wills’ departure comes amidst a backdrop of challenges for the company, including a difficult consumer retail market, unexpected weather patterns, and underperformance in its wholesale segment.

Superdry’s half-year report for the period ending October 28, 2023, paints a somber picture of its financial health. Group revenue plummeted by 23.5% to £219.8 million, primarily attributed to challenges in the consumer retail market, unseasonal weather, and the underperformance of the wholesale segment. Retail sales witnessed a decline of 13.1%, while wholesale sales suffered a substantial drop of 41.1%.

Structural market changes, strategic decisions such as exiting US operations, and ongoing clearance sales exacerbated the sales decline. Despite working diligently to cut costs and streamline operations, the company reported an adjusted loss before tax of £25.3 million for the first half of the year, nearly doubling the previous year’s figure.

Superdry, however, narrowed its loss, reporting a pre-tax profit of £3.3 million, a significant improvement from the prior year’s loss of £17.7 million. Total operating costs decreased by 16.1%, driven by reductions in sales and distribution costs, as well as central costs.

The company remains committed to further cost reduction, aiming for £40 million in savings for the entire financial year. Acknowledging the challenging market conditions, Superdry remains cautious about the future, anticipating the full-year results to mirror the ongoing adversity.

Despite these short-term challenges, CEO Julian Dunkerton underscores the significant operational strides made during the first half of the year as part of Superdry’s ongoing turnaround efforts.

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