Superdry has announced a pre-tax loss of £85.4 million following a tricky year and a board room battle which saw Cheltenham-based Julian Dunkerton retake control of the company he founded.
Losses for the year to April 2019 compared with a profit of £65.3m in 2018.
The global fashion brand’s underlying profits before tax dropped 56.8 per cent to £41.9m from £97m. Revenue remained flat at £871.7m.
Founder and Interim Chief Executive Officer Julian Dunkerton said the issues in the business would not be resolved overnight.
“My first priority on returning to Superdry has been to steady the ship and get the culture of the business back to the one which drove its original success.
“All the team in Superdry are working incredibly hard with a real focus on returning the business to its design-led roots and getting the retail basics right.
“Although we are only three months in, our initiatives are gaining some early traction, and I am confident we are doing the right things to ensure that over time Superdry will return to strong profitable growth.”
Chairman Peter Williams said: “These are clearly a very disappointing set of results. However, everything I have learnt since joining the business in April has reinforced my view that Superdry is a powerful brand with great people across the organisation.
“While we have been clear it is going to take time, I remain convinced that continuing to work closely with Julian and the leadership team, we are building the right plan to deliver long-term sustainable growth for shareholders.”
The company expects Group revenue to show a slight decline in FY20, particularly in the first half, as it rebalances promotional activity and strengthens the brand.
Overheads and central costs are expected to show a modest reduction year on year, with savings from store costs and central efficiencies partially offset by investments in areas such as marketing.