RE: Buy Superdry for 10 bagger potential19 Jan 2021 17:11
Superdry?!? Over-branded clothing from an out of touch brand. Have you ever actually been into one of their stores? I had the unfortunate experience of visiting the Trafford Centre in the build up to Christmas, and I was bowled over by the size of the Superdry store. HUGE! The shelves were bursting with stock, discount and sale signs everywhere, tonnes of staff, and crucially... not a customer to be seen. The public were walking straight past the store in their droves, to the point that it actually made me take notice while I was having a coffee and watching from the sidelines.
£1.6bn down to £170m - i'm not surprised. Consumer demand and trends have moved on, but Superdry haven't. Until they revamp their offering I see them continuing to fall by the wayside.
On the otherside, Boohoo has great fundamentals needed for a long term hold. Relevance, growth, engagement with customers, vision and strong financials. Plenty of room for growth overseas and more.
Once we can restore faith on the issues highlighted with our supply chain, we'll be back on the right trajectory. Won't multibag overnight, but plenty of room for solid growth over the next few years.