Superdry merchandise is shown at their store at the Woodbury Common Premium Outlets in Central Valley, New York, US, February 15, 2022. REUTERS/Andrew Kelly/File Photo Obtaining licensing rights
Sept 1 (Reuters) – Struggling UK fashion retailer Superdry expects weak revenue growth in the current financial year after it reported a wider-than-expected annual loss on Friday, saying the cost of living crisis and falling real wages had led to weak revenues. sales.
The company, whose fashion line includes mostly blazers and jackets, is also facing weak orders from wholesale partners, who have been cautious about inventory levels and liquidity amid economic uncertainty.
Superdry postponed the publication of its annual results on Thursday and requested the suspension of its shares until after the results are announced.
“This has been a difficult year for the company and market conditions have been very difficult, especially in the wholesale business,” founder and CEO Julian Dunkerton said in a statement.
Revenue for the first quarter, which ended in July, fell 18.4%, hurt by lower demand for its spring and summer collection due to severe weather across Europe and the subsequent start of an end-of-season sale.
“Our new fall/winter collection is selling better earlier in the season than usual,” the company said.
Superdry is raising money to bolster its finances and said cutting costs is a priority.
“For the full year, we do not expect to see significant revenue growth as we focus on cost savings and margin improvement,” the company said.
Superdry shares, which were still outstanding on Friday, have lost more than half their value this year.
The company reported an adjusted pre-tax loss of £21.7 million ($27.46 million) for the year ending April 29, 2023, compared to a profit of £21.6 million.
“After the Christmas holiday, what was traditionally a slower trading period was exacerbated by the emerging cost of living crisis and lower real wages, resulting in slower than expected sales in all regions towards the end of our financial year,” she added.
($1 = 0.7902 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Preparing by Muhammad for the Arabic Bulletin) Editing by Dania Ann Topel and Susan Fenton
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