Superdry Share Price (SDRY)

riosurfer
I agree. there has been gross mismanaged. brand has been diluted but if you look at it Superdry is in good financial health and thats the key. so recovery though challenging is less difficult.

they don't have to worry about arranging and managing debt which is what a lot of other brands have been forced to do and thus taking away key management time in managing finance rather than managing the business and thus got themselves into a negative cycle where the management has never the time to focus on turning around the brand and the business.

also they dont need to worry about growth. Superdry turnover is 872 million, in my opinion too high compared to the value of the business. they have diluted the brand and profitability for getting a higher growth.
I think even 500 million is great revenue for a brand like Superdry as long as they can recover the brand value . they can make enough money on a turnover of 500 million for it to be valued to 4 times of today's share price. we all know as shareholders we would rather have a higher share price than a higher turnover and lower share price. but professional management in all companies are always rewarded on higher toppling and thus they really focus on that thus diluting the brand, the value of the business and shareholder returns in the long run.... Julian isn't going to do that as he has skin in the game and I am sure looks at the business from a shareholder perspective..

so yes in the short run there is going to a bit of pain as revenue might reduce and thus hitting a profitability as overheads may take some time to reduce and fix, rents...excessive management layers..excessive inventories ....etc.. some of the write down that Julian has made at least will make it less painful for the current management

I expect that within a year we should see significant upside. Superdry remains a great brand. it jus needs love and care and bit of polish. the earlier management were hell bent on making it a prime mark.

@hash - good points but the key issue is the brand. It’s been mismanaged by previous management in my view. Quality slipped, design edge was list and the logo became too ubiquitous. JD’s biggest challenge I’d to restore the appeal of the brand - never easy but certainly not impossible.

here is a company with no debt, huge brand value and a great quality. the management had managed to bring the performance down, but now with change in the board and the management I guess Superdry looks super cheap to me. just bought few thousand more today......

https://www.retailgazette.co.uk/blog/2019/09/superdry-img-licencing-partner/

Retail sales fall but SDRY up, this does not make sense

GL

Historically, SDRY has always had a reputation for carrying ridiculous amounts of SKU's in its' warehouses. Some of that was usually attributed to JD's passion for buying way too much. But yes, the most recent management were failing in a number of fundamental areas largely down to the fact that they weren't proper retailers. There are so many things to address, but I am confident that with some quality hires, things will find a way of achieving some prudent retail discipline. To this end, I hope JD gets on with finding someone who is experienced at clearing up messes, as this clearly is.
I referenced Susanne Harlow at Jack Wills recently. I couldn't see why Templeman had shipped her in from Debenhams to head up a 'preppy' style fashion retailer. Obviously its gone t*ts up. She has now been fired by Mike Ashley. Also, news from Karen Millen (another one down the plughole) is that CEO Beth Butterwick has 'left the business'.
Tough times. But some of these problems seem very self inflicted. Harlow to Jack Wills being an example. Sutherland joining SDRY obviously... I hope that between JD and Peter Williams (who is well connected) don't just grab a name that is suddenly available from a previous disaster (Sutherland again).
My understanding of SDRY is that it is quite insular, not least because it's based in Cheltenham. That doesn't help when it comes to being able to identify the right talent for the many roles of a business this size. Thats why I want to see someone come onboard that is from a relevant, successful brand, that gets the current consumer habits, that has an international knowledge of the key markets. They also need to have an incredible network in order to take advantage of the talent coming out of these other struggling retailers, as there's going to be some good people being displaced right now. Peter Williams says they have a recruiter working on it. I hope they're making progress.