Superdry Plc stock plunged after the fashion retailer indicated it’s likely to make a loss this year and said it’s considering a 20% equity raise as it fights for survival.
(Bloomberg) — Superdry Plc stock plunged after the fashion retailer indicated it’s likely to make a loss this year and said it’s considering a 20% equity raise as it fights for survival.
The shares plummeted as much as 20% on Friday on news of the steep drop in performance at the group which had previously guided it would break even this year.
The retailer, known for its logo T-shirts and bright colors, blamed the downturn on poor weather and weaker sales as cash-strapped shoppers rein in spending. It said it’s considering raising capital including a 20% equity raise fully backed by founder and Chief Executive Officer Julian Dunkerton.
Analysts at Jefferies called the update “disappointing” and warned the fundraising looks to be “pressing”.
Superdry has been trying to revamp its operations for some time and cut costs amid the worst cost-of-living crisis in decades.
It has already said it is selling its brand in Asia Pacific for $50 million. The retailer’s lender Bantry Bay Capital, backed by US activist Elliott Investment Management, has agreed to waive borrowing limits and increase flexibility in an existing £80 million ($100 million) loan during the sale process.
The business already warned on profit in January when shopper sentiment was proving weaker.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.