Superdry eyes cost cuts after store closure reports

Superdry eyes cost cuts after store closure reports
Superdry sweatshirtsReuters

Superdry has said it is exploring “cost saving options” after reports said it was considering a revamp that could include store closures and job cuts.

The fashion retailer said the move was in line with its turnaround strategy and that it was prioritising “its cost reduction agenda”.

At the weekend, reports suggested it was considering a major restructuring.

Last week, Superdry said that recent trading had been challenging, with revenues down 23.5%.

“Remarkably unseasonal weather” along with customers being under pressure from the high cost of living were two reasons given for its sales slump.

The fashion brand, known for its warm coats and hoodies, said on Monday that it was working with advisers to explore cost saving measures.

“Whilst there is no certainty that any of these options are progressed, they aim to build on the success of the cost saving initiatives carried out by the company to date and position the business for long-term success,” it said.

At the weekend, Sky News reported the company was weighing up a restructuring that could involve significant numbers of store closures and job cuts.

When Superdry announced its half-year results on Friday, it said it was set to deliver more than £40m of savings this financial year, after previously cutting £20m.

“This has clearly been a difficult period for Superdry,” Julian Dunkerton, founder and chief executive, said last week.

“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.”

Source: bbc.co.uk

By David Ryckman