Continue To Sink The British Tide Brand Superdry Only Earn 200 Thousand Pounds In Half A Year.

Superdry PLC (SDRY.L) was extremely dry and continued to sink. In the first half of the year, the pre tax profit was only 200 thousand pounds after adjustment, and the actual pre tax profit was a loss.

Julian Dunkerton, the founder of the group and its return to the company, won the CEO's position. It is now a complete reset stage and faces a challenging retail environment. Despite this difficult background, the group's financial performance remains stable.

As the largest shareholder holding 18.4%, Julian Dunkerton won enough support at the shareholders' meeting in April this year, and successfully returned to the board of directors and served as interim CEO. The former non executive chairman of the British fashion business Boohoo Group PLC (BOO.L) Peter Williams was also elected chairman of the board. After the shareholders' meeting, the former board of directors and management resigned.

In the second half of the year, British companies said they were constrained by continued macroeconomic uncertainty, especially from the uncertainties of the British general election and Brexit. Therefore, they are still cautious about the outlook and expect lower single digit declines in the second half of the year.

As of the first half of October 26th, group revenue fell by 11%, from 414 million 600 thousand to 369 million 100 thousand pounds, of which retail income was 215 million 100 thousand pounds, down 11.4% from 242 million 800 thousand a year earlier, a decrease of 11.8% compared to the same period, and the decrease in revenue from e-commerce and wholesale business was 10.7% and 10.3% respectively.

Extreme dry said sales decline was mainly due to the group's increase in the proportion of full price sales, and no longer relied on discounts to promote sales strategy. On this basis, the group's medium term gross margin improved by 250 basis points, which was completely offset by 180 base points of unfavorable exchange rate and 80 basis points of inventory reduction. Real gross profit margin narrowed from 56.4% to 56.3%, or 10 basis points.

British companies say that the reform is systematic, including reducing the fixed equipment and devices in the store, increasing the sales area by 25%, stabilizing the core products and increasing the seasonal products by 50%; increasing the sales of organic cotton products to 10%, opening the owners' renewing negotiations, reducing the average rent by 30%; increasing the online channel supply styles and selecting more third party platforms such as Zalando, Next and ShopDirect; starting from January 2020, leaving the unprofitable US wholesale business, expanding the international franchise business, opening 13 special stores, accelerating the supply chain circulation of China's business, and reducing the delivery time from ten months to two months.

In a media interview, Julian Dunkerton hinted that he might be in control of the company longer than the contract time. If a three year contract fails to complete the company's reform, he may stay. "(April 2021) is the lowest (deadline). I don't want to leave half of my work, so long as the company is satisfied with me, I will stay."

However, it is undoubtedly a sharp drop in profits when the reorganization started.

By the end of October, in the first half of fiscal year, the adjusted pre tax profit fell by 98.4% compared with 12 million 900 thousand in the same period last year. The actual pre tax profit was also recorded at a loss of 4 million 200 thousand, while the pre tax profit was 26 million 400 thousand pounds in the same period last year.