Superdry working with advisers on cost-saving options

29th Jan 2024 07:47

(Sharecast News) - Superdry said on Monday that it is working with advisers on cost-saving options.

Responding to press speculation, the fashion brand said: "In line with the company's turnaround strategy, the company confirms it is working with advisors to explore the feasibility of various material cost saving options.

"Whilst there is no certainty that any of these options are progressed, they aim to build on the success of the cost saving initiatives carried out by the company to date and position the business for long-term success."

Superdry said it has continued to prioritise driving forward its cost reduction agenda. The group is set to deliver more than £40m in savings this financial year, ahead of the initially stated target of £35m, with more than £20m of those savings already achieved in the first half.

Over the weekend, Sky News reported that Superdry and its advisers at PricewaterhouseCoopers were initiating work on plans that could lead to a company voluntary arrangement (CVA) or restructuring plan.

Sky said this could be aimed at closing underperforming shops - with a commensurate impact on jobs - and forcing through rent cuts with landlords.

At 0930 GMT, the shares were up 2.9% at 16.91p.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Something's got to give at Superdry given the dramatic revenue slide. The company had blamed unseasonably warm weather, but it's clear that it's stuck in a difficult spot mid-market, where purse strings are being pulled tighter, and without the fresher looks to pull in younger crowds it's a super hard slog.

"Faced with soggy sales, the company looks like it has little option but to undertake a big restructuring drive, and its confirmed it is looking into the feasibility of cost-savings options. There is no dressing up the challenge ahead, and staff at stores will be bracing for store closures and job losses, with fresh holes set to appear in high streets.'"