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magazineWhy Superdry shares are down almost 50% in one year
Shares in Superdry (SDRY) have slumped 47.3% over the past 12 months as investors price-in challenging high street conditions and the uncertain prospects of a successful turnaround.
The latest sell-off in the stock followed the fashion retailer’s withdrawal (14 April) of ‘broadly breakeven’ full year 2023 earnings guidance and news it is considering a dilutive equity raise to shore up the balance sheet, one that founder and CEO Julian Dunkerton would support.
The struggling fashion brand also blamed the cost-of-living crisis and poor weather for disappointing retail sales in February and March.
Weather is an excuse which, however valid, rarely washes with investors. ‘Wholesale performance continues to lag the rest of the group, although we are making progress in working with our partners to support their recovery,’ stressed Superdry.
While Dunkerton’s belief in the Superdry brand is ‘stronger than ever’, the share price suggests the brand is no longer as relevant as it once was, with fewer people prepared to pay a premium for Superdry’s faux-Japanese stylings.
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Issue contents
Feature
Funds
Great Ideas
News
- Positive bank reports set S&P 500 on course for new highs
- Why Superdry shares are down almost 50% in one year
- A slowing US economy and sticky inflation leaves the Fed little choice
- What to expect from Sainsbury's results after Tesco's growth warning
- New record high for LVMH as Chinese demand returns
