UK’s Superdry expects to break even this year, drops profit outlook, Retail News, ET Retail

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Britain’s Superdry said on Friday it now expected to broadly break even this year compared with its earlier forecast for a profit, as its wholesale segment underperformed amid higher uncertainty during the last quarter.

Inflation-pinched British consumers cut their shopping last month by the most in at least 25 years, official data showed, dashing hopes of a Christmas boost for the country’s flagging retail sector.

However, Superdry saw sustained demand over the Christmas period as sales at stores caught up to pre-pandemic levels, with the fashion retailer‘s revenue rising 24.9% in the nine weeks to December-end.

“We don’t expect market conditions to become easier any time soon, but with a new financing package in place and the brand in great health, we approach the year ahead with optimism,” Chief Executive Officer Julian Dunkerton said in a statement.

The retailer’s adjusted loss before tax widened further to 13.6 million pounds ($16.83 million) in the half year from the 2.8 million pounds loss it saw a year ago.

The company had earlier forecast an adjusted annual profit before tax of between 10 million pounds and 20 million pounds.

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