Superdry Co-Founder Dunkerton Back As CEO

Superdry Plc (SDRY.L) is a fashion retailer offering clothing, accessories, footwear and cosmetics. The company markets its products under the Superdry brand. Its products include shirts, tops, T-shirts, polo shirts, hoods and sweats, denim, joggers, dresses, jackets, knitwear, shoes, bags, and accessories. It sells its products through its retail store and online websites. It also operates Superdry branded franchise stores.

In a recent development, the co-founder of Britain’s biggest fashion retailer Mr Julian Dunkerton returns as CEO of the Superdry Plc.

The surprise victory of Dunkerton came ahead of shareholders meeting organised by Mr Julian Dunkerton and was backed by his supporters. His return on the board of the Superdry prompted the resignation of the senior management people.

After the emergency board meeting outcome announced, chairman Peter Bamford and chief executive Euan Sutherland voluntarily resigned with immediate effect. During the meeting, Julian Dunkerton said that "he is open to work with anyone, provided that they do what is good for our company."

Peter Williams, an old stager retail industry professional also elected by the board as interim Chairman of the group.

During the meeting, ex-CFO Chas Howes who is also a shareholder in the Superdry, hold responsible for the board for awful financial performance and failure to understand the brand. There was a total lack of good leadership and direction to the talented young staff at Superdry, he added.

The co-founder James Holder and Mr Dunkerton have proclaimed that the company requires to get back to its design led-roots to fix the plunge in its top-line and its bottom-line margin. But this was widely rejected by the board, and they said, the company should remain focused on the global digital brand strategy, that was opposed by the Dunkerton. The board also added that they believe the return of Mr Dunkerton as CEO is extremely damaging for the company and argued that the current poor performance of the company was partially on account of products that had overseen by Mr Dunkerton before he left.

Superdry offers its products through three channels, retail, wholesale and online. The retail channel consists of the company-owned store portfolio in the UK, mainland Europe and North America. It operates 202 owned stores, with total space of 900,000 square feet, consisting of smaller boutique stores, medium-sized stores of around 5,000 to 6,000 square feet (primarily in the UK and increasingly in mainland Europe), and larger stores, such as the company's flagship stores in Regent Street, London; and Munich, Germany. The company's wholesale channel consists of the ownership of brands, wholesale distribution of its brand products worldwide and trade sale.

Stock Performance

(Source: Thomson Reuters)

After news hit the market that Mr Dunkerton is back as CEO of the Superdry, its shares plunged significantly in the Wednesday’s session and at the time of writing (as on April 03, 2019 at 04:08 PM GMT) its shares were quoting at GBX 460.60 and plunged by 40 points or 7.96% against its previous day close. On a year basis, stock has delivered a price return of negative 67.15% and registered a 52w high of GBX 1,565.0 and a 52w low of GBX 354.0. Total outstanding market capitalisation was around £376.90 million with a dividend yield of 6.76 per cent.

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