Fashion retailer Superdry announces increased losses
Superdry, known for its logo T-shirts and bright colors, said mild weather and heavy discounting in the sector had hurt sales. (AFP photo)

Cheltenham: Superdry has reported that the struggling fashion retailer’s losses have widened after the Christmas shopping season failed to improve its performance.

The British brand, known for its logo T-shirts and bright colors, said mild weather and heavy discounting in the sector had hit sales. Superdry also announced the resignation of its chief financial officer, but had already stated in September that it did not expect sales to increase this year.

The company’s shares, which had fallen 89% in a year, rose 2.5% in early trading after the company avoided further downgrades.

The company issued a profit warning last month, saying its results were “significantly below” management’s expectations after a mild fall and a slow start to late-season summer sales. Superdry is said to have hired advisers from PricewaterhouseCoopers to explore debt financing options. The company has already taken out significant debt from lenders of last resort, including Bantry Bay Capital and Hilco Capital.

Superdry chief executive Julian Dunkerton said in a statement that Christmas trading had proven difficult and the company did not expect market conditions to improve in the short term.

Superdry’s adjusted pre-tax loss rose to £25.3m in the first half of the year, up from around £14m in the same period last year.

The company also announced that Chief Financial Officer Sean Wills will step down at the end of March, with Giles David joining the business on an interim basis at the end of January.

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