JULIAN DUNKERTON plans to more than double his product range as he battles to turn around Superdry, the business he co-founded in 2003.
The returning chief executive is working to “reset” the business after what he sees as disastrous wrong turns under previous management.
Today he reported grim-looking half year numbers, but insisted the future was bright. He will take the number of full-price goods available from around 1600 to more than 4000. “We will be having a huge increase in our wholesale range, which then affects the retail side,” he said. “When you walk into our stores, you will be constantly amazed.”
Profits fell from £13 million to just £200,000, largely due to charges that follow an “internal accounting review”. Sales were down 11% to £369 million.
Dunkerton, the biggest shareholder, managed to get himself back on the board earlier this year, a move that led to the departure of then chief executive Euan Sutherland and the rest of the board.
He thinks Sutherland was too willing to sell the clothes at a discount, hurting the brand. Peel Hunt analysts said: “The numbers make for grim reading, reflecting the legacy position and stock file, although the statement is peppered with examples of product and operational improvements.”
The shares fell 4% to 480p, down from a high of more than 2000p nearly two years ago. Despite Dunkerton’s reluctance to cut prices, the company had its best ever Black Friday online. He said a “renewed focus on the retailing basics” would improve results, but warned that his “reset” will take up to three years.
City analysts seem to be broadly positive on Dunkerton’s plans so far, but they note that he is trying to do a turnaround in the midst of a miserable period for retailers in general.
