- Angela Gonzalez-Rodriguez |
New York -Superdry (LSE:
Last week, the fashion retailer acknowledged its struggles to remain relevant in the high street, blaming its loss of lacklustre on the hot weather mainly, but also a bad currency hedge for an expected profit miss, as highlighted by ‘The Motley Fool'.
Superdry's stock has shredded 62 percent of value since new management team joined
But that was just the beginning. The fashion retailer now expects full-year profits to come 23 million pounds short than previous guidance. As a result, the stock collapsed, adding to the shares´ loss of value: Superdry traded at 1,980 pence apiece in January, trading now in the region of 733 pence. It fell circa 62 percent in the year to date.
Investors have taken the news hard. Shareholders wonder how this weakness wasn’t identified and addressed a long time ago. It‘s worth recalling that the fashion group is immersed in an 18-month turnaround plan that includes diversifying its product range.
Additionally, management has failed to get shareholders’ trust. This sustained decline wasn’t helped when the company’s co-founder started selling down his shares (last summer he sold a 6.7 percent stake in the company.) In fact, earlier this week, Julian Dunkerton was reportedly working on a campaign to return to Superdry after the share price plummeted.
The fashion entrepreneur told in an interview with the BBC he is talking to shareholders about a comeback. He would already count on his former designer James Holder.
Dunkerton stepped down as chief executive in 2014 and left the board last March, he remains the biggest shareholder.
Photo:Superdry 2018 Financial Report