Britain’s Superdry considering 20% equity raise
2:56 am Friday, April 14th, 2023
LONDON (Reuters) – Struggling British fashion brand Superdry said on Friday a potential equity raise of up to 20% backed by founder and CEO Julian Dunkerton was among funding options being considered.
The group, whose shares have fallen 37% over the last year, also withdrew its profit guidance of “broadly breakeven” for its current year and is now forecasting revenue in the range of 615 million pounds to 635 million pounds ($771-$796 million).
Superdry, which had warned on profit in January, said retail sales in February and March, did not meet its expectations.
This was partly due to the cost-of-living crisis impacting spending and poor weather hitting demand for spring-summer items, it said.
Superdry said the performance of its wholesale division continued to lag the rest of the group.
Last month, Superdry agreed to sell its intellectual property assets in much of the Asia Pacific region to South Korea’s Cowell Fashion Company for $50 million.
The deal, which is subject to shareholder approval, has the backing of Bantry Bay, Superdry’s lender.
Superdry also said it has also identified cost savings of over 35 million pounds.
“We need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base,” said Dunkerton.
“My belief in the Superdry brand is stronger than ever which is why I’m prepared to provide material support to any equity raise undertaken,” he added.
($1 = 0.7975 pounds)
(Reporting by James Davey, Editing by Paul Sandle and William James)
