StockMarketWire.com - Fashion retailer Superdry swung to a full-year loss and slashed its dividend as founder and new chief executive Julian Dunkerton pledged to return the company to its 'design-led roots'.

Pre-tax losses for the year through 27 April amounted to £85.4m, compared to a profit of £65.3m on-year.

Revenue was broadly flat at £871.7m.

Superdry slashed its dividend by 90% to 2.2p per share.

' In a difficult retail climate, full year group revenue was flat on the prior year, with a first half performance benefiting from discounting and space growth followed by poor performance in the second half across all channels,' Superdry said.

The company said Dunkerton, who recently returned to the helm of the company following a boardroom stoush, would bring back design excellence, create clearer customer segmentation and 're-ignite the brand DNA' through consumer engagement and social media.

Turning to its outlook, the company said it expected to post a slight fall in revenue in the current financial year, particularly in the first half as it rebalances promotional activity.

'Global retail markets are expected to remain highly competitive and the consumer outlook continues to be uncertain, including the continued uncertainty of the impact of Brexit,'Superdry said.

'Given the scale of the trading downturn in FY19 and the lead times required to rectify the product range and proposition, management view FY20 as a year of reset, creating a platform from which Superdry can return to long-term profitable growth.'

'We expect our financial performance in FY20 to reflect market conditions and the historic issues inherited.'

Dunkerton said: 'The issues in the business will not be resolved overnight.'

'My first priority on returning to Superdry has been to steady the ship and get the culture of the business back to the one which drove its original success.'

'All the team in Superdry are working incredibly hard to deliver the direction set out, with a real focus on returning the business to its design-led roots and getting the retail basics right.'

'Although we are only three months in, our initiatives are gaining some early traction, and I am confident we are doing the right things to ensure that over time Superdry will return to strong profitable growth.'









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