According to Sky News, Superdry is considering its debt-raising options, shortly after the company warned that mild autumn weather had impacted its sales towards the end of last year.
GlobalData associate apparel analyst Alice Price told Just Style exclusively that the news “comes as no surprise” after years of "lacklustre results" from Superdry.
"Superdry has struggled to modernise its product offering and align with current trends and is now predominantly favoured by older consumers looking for practical clothing,” Price explained.
Looking ahead, she suggested that Superdry should examine its closest rivals for a route back into profit.
She stated: “The brand should look to the likes of Hollister and Abercrombie for insight into how to successfully turnaround a struggling business, after both brands managed to shake off their outdated early 2010s aesthetic to regain relevance among fashion-forward Gen Z and millennial shoppers.”
In December 2023, Superdry said it expected its 2024 FY profitability to be impacted by market challenges, with retail sales down 13.1% year-on-year.
At the time, Superdry’s founder and CEO Julian Dunkerton said: “The unseasonal weather through the early autumn led to a delayed uptake of our autumn/winter range and this impacted sales in the first half of the year. Whilst we have seen modest signs of improvement through the recent spell of colder weather, current trading has remained challenging, and this is reflected in the weaker than expected business performance. The operational progress we have made in the first half has been more encouraging with the IP sale for the South Asian region and strong progress on our cost efficiency programme.”
Superdry declined to comment on the latest reports following a request by Just Style.
The news also comes shortly after Superdry announced its intention to sell its India, Sri Lanka and Bangladesh intellectual property licenses and brand assets to Indian retailer Reliance Brands Holding UK Ltd for £40m ($48.4m).
