Superdry says conditions will not improve soon as it takes Christmas hit

The boss of Superdry has warned that the company’s fortunes could still take some time to turn around, as the market is unlikely to "get any easier" in the near-term, as the business said that Christmas had been challenging.

The clothing firm said that its revenue had fallen by nearly a quarter (23.5%) to £219.8 million in the six months to the end of October, with adjusted loss nearly doubling to £25.3 million

The business managed to make a statutory profit, but that was due to an influx of cash from a sale of intellectual property in Asia.

Echoing many retailers in recent weeks, Superdry blamed "milder" autumn weather for some of its woes. But it reported that the colder weather in recent weeks had helped it shoot more outerwear.

Yet revenue was still down, by 13.7%, in the 12 weeks since the end of October 2023.

"Christmas trading proved challenging, and we do not expect market conditions to get any easier in the near-term," said chief executive Julian Dunkerton.

"This has clearly been a difficult period for Superdry. A challenging consumer retail market, set against a backdrop of macroeconomic uncertainty and some remarkably unseasonal weather conditions have all combined to weaken the financial performance of the group."

The company’s troubles led it to warn shareholders last month that weaker trading was likely to hit profits during this financial year.

On Friday the business said that the "consumer retail market remains challenging and unpredictable".

It added: "As outlined as part of our December trading statement we expect full year profitability to be impacted by the weaker trading we have seen to-date, and internal expectations remain consistent with that view."

Bosses said they were focused on plans to cut costs, with £40 million of annual savings planned by the end of this financial year.

But Sky has also reported that the business is trying to drum up loans to help it pay its bills and that it had hired advisers as part of that process.