- Superdry boss denies buyout rumours
- No take-private plans afoot ‘at the moment’
- Fashion retailer recently downgraded guidance
Julian Dunkerton, the founder and CEO of Superdry (SDRY), has dismissed rumours he is plotting to take the embattled clothing and footwear retailer private and delist it from the stock market despite a 40%-plus one year share price plunge.
In a brief statement, Dunkerton noted recent press speculation that he is seeking a deal to take the fashion retailer private, but reassured investors there were ‘no plans to do this at the moment’.
Shares in Superdry have fallen 41% over the past year and have shed roughly 95% of their value since peaking at around the £19.30 mark in 2017.
However, they did perk up 2% to 120p on today's statement, some investors convinced Dunkerton can turn the business round and traders perhaps betting on the possibility of a private equity deal in the future given, the wording of the statement.
Dunkerton definitely has his work cut in reviving the jackets and sweatshirts seller's fortunes given the headwinds swirling round the retail sector, including inflationary pressures and the impact of the cost-of-living crisis on consumers' purchasing power.
SOFT SPRING AHEAD?
On 27 January 2023, Superdry's shares came under selling pressure after the Cheltenham-headquartered company reported a lurch into loss for the first half and cut profit guidance for the year to April 2023 due to the underperformance of its wholesale business and ‘increasing uncertainty’ over the fourth quarter outlook.
Superdry now expects a ‘broadly breakeven’ result for the year, having previously guided to adjusted pre-tax profits in the £10 million to £20 million range, with management warning of the potential for ‘a soft Spring’.
Dunkerton commented: ‘Whilst we did trade well through November and December, the outlook for the remainder of the year is uncertain and as a result we are moderating our profit outlook to broadly breakeven.
‘We don’t expect market conditions to become easier any time soon, but with a new financing package in place and the brand in great health we approach the year ahead with optimism.’
