Morning!

There is still an overhang from yesterday, but for now I'm studying today's results. I got as far as TEG by close of play:



Superdry (LON:SDRY)

  • Share price: 436p (-3%)
  • No. of shares: 82 million
  • Market cap: £358 million

Final Results

This is within our small-cap limits - not something that I would have expected, if you asked me a couple of years ago! These shares were changing hands at £20 at the start of last year.

Co-founder Julian Dunkerton is back and his first priority is to "steady the ship", in his own words:

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.

Results

  • revenue flat (£872 million), gross margin down 250bps to 55.6%
  • underlying PBT £42 million (from £97 million)
  • net cash £36 million

Outlook

There is no crumb of praise for previous management, who get the blame for the problems which now need to be fixed:

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.

Revenue is set to show a "slight decline" in FY 2020, "particularly in the first half".

Dunkerton's statement

This is important - it outlines his vision for reinvigorating the brand and the company. Nothing else really matters.

Key objectives:

  • focus on design, rather than the "buyer-led approach" of the previous CEO. Using a combination of in-house designers (which Dunkerton will work with) and the SuperDesign Lab (a consultancy led by SDRY's other co-founder).
  • return to previous quality of product
  • reduce lead times, drive cost efficiency
  • create "more…

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