Superdry losses widen as Christmas fails to revive fashion sales

Elsewhere, WH Smith saw its sales benefit from festive travel, while H&M is said to be planning to close stores in Spain

Fri, 26 Jan, 2024 - 16:04

Katie Linsell and Sabah Meddings

Superdry reported widening losses after Christmas sales failed to revive performance at the struggling fashion retailer. The British retailer said mild weather and heavy discounting hit sales. Superdry, which also announced the departure of its chief financial officer, already said in September that it expects no revenue growth in the current year.

The company issued a profit warning last month, saying that performance was “significantly below” management expectations after a mild autumn and a late start to its end-of-season summer sale. Superdry is said to have hired advisers at PwC to seek out debt-raising options. The business already has expensive borrowing from lenders of last resort including Bantry Bay Capital and Hilco Capital.

Julian Dunkerton, Superdry’s chief executive, said in the statement that Christmas trading had proved challenging, and he did not expect market conditions to improve in the near term. Superdry’s adjusted loss before tax grew to £25.3m in the first half, compared with around £14m a year earlier.

WH Smith upswing

Meanwhile, airport retailer WH Smith reported an 8% rise in total revenues for the 20-week period to January 20, benefitting from resilient travel demand. The upswing in footfall at train stations and in airports has brought brisk business, with Travel UK, the company's largest division, posting a revenue increase of 15% for the period.

In Spain, Swedish fashion retailer H&M said it plans to close down more than a quarter of its stores and lay off as many as 588 workers in Spain, home of its rival, Zara- owner Inditex, the country's CCOO union said.

The company has 91 stores and employs 4,000 people in Spain and will close 28, the CCOO said. "We believe the measure is too aggressive and it is possible to look for solutions which doesn't imply job losses," the union said. H&M is the world's second largest stock market- listed clothing retailer behind Spain-based Zara-owner Inditex.