Superdry plc

Group revenue decreased 23.5% to £219.8 million. Gross margin improved 1.9 percentage points to 54%. Adjusted loss before tax was £25.3 million, while statutory profit after tax was £2.8 million. Adjusting items were £28.6 million, mainly reflecting £36.3 million from the APAC brand-rights sale and an IFRS 16 non-cash impairment charge of £10.2 million. Operating costs before adjusting items were down 16.1% in the half, or 21% excluding other-gains movements. Inventory was down more than 24% to £130.9 million, net cash and cash equivalents were £27.8 million, and net debt was £28.9 million. Management said cash this morning was around £30 million, and it expects year-end net debt to be broadly in line with last year, somewhere between £20 million and £30 million. It did not give formal next-quarter or full-year revenue/EPS guidance, but said the cost efficiency program should deliver in excess of £40 million of savings this financial year, with more than £20 million already achieved in H1.

Julian Dunkerton framed the quarter as a difficult but necessary phase of the turnaround, saying the business is still dealing with market weakness, weather volatility, and the consequences of clearing aged stock. He said the mission remains to become the “number one premium sustainable style destination,” with three priorities: improve efficiency, simplify the business, and build the target operating model. His tone was confident and determined, stressing that the product is getting better, the model is being simplified, and the company is only “halfway through” fixing the cost base.

Shaun Wills focused on the numbers and balance-sheet actions. He pointed to £219.8 million of revenue, a 54% gross margin, £25.3 million of adjusted loss before tax, and £28.6 million of adjusting items, while emphasizing that over £20 million of cost savings had already been delivered in H1 and more than £40 million are expected for the full year. On liquidity, he noted net debt of £28.9 million at the half, net cash and cash equivalents of £27.8 million, cash of around £30 million this morning, and year-end net debt guidance of £20 million to £30 million. He also highlighted inventory down over 24% to £130.9 million and said the business is not seeking new capital at this stage.

Analysts focused on liquidity, stock clearance, weather dependence, creditor terms, and whether more capital might be needed. Management said the reduction in stock only modestly affects borrowing under the Bantry Bay facility, that there are no current concerns on creditor terms, and that no new capital is needed at this stage because cash is around £30 million and cost savings are outperforming. They also said the stock clear-out should largely be done by year-end, which should support FY25 margins, and reiterated that any further structural savings may come from resizing warehouses and other operations over time.