Superdry has parted ways with its fourth finance chief in five years as the troubled British fashion brand faces mounting losses.
The company has announced that Sean Wills, who has been its finance director for three years, will step down and be replaced by interim finance director Giles David next week.
Mr Wills was replaced by interim finance director Benedict Smith, following the departure of Nick Gresham in October 2020, less than two years after he replaced Ed Barker. Mr Wills was in his second role after leaving his role as Superdry's finance director for the first time in 2015.
Mr David previously worked at ailing McCall's and Casual Dining Group, both of which went into administration. “We have performed well in our consumer business and have thrived in turnaround environments,” Superdry said.
David's arrival comes as Superdry faces another difficult year and warns that results are expected to “reflect the more challenging environment we have seen to date”.
In its delayed half-year results, the company announced a 23.5% decline in sales for the six months ended October 28. Next he saw sales fall by his 13.7% in his 12 weeks to January 20, with wholesale sales down his 38%.
The group slumped to a half-year loss of £25.3m, but then made a one-off gain of £36.3m, mainly from the sale of brand rights in Asia. A year ago, the group had an underlying loss of £13.6m.
Superdry said sales were affected by “a mild autumn that continued through the peak Christmas trading period”. Weak consumer demand also led to “significant discounting across the industry,” he added.
Superdry warned before Christmas that mild weather would impact profits, but did not give figures.
Superdry founder and chief executive Julian Dunkerton, who returned in 2019 to rebuild the business following a board coup, said: A difficult consumer retail market against a background of macroeconomic uncertainty, combined with some significantly unseasonable weather conditions, has contributed to the deterioration of the Group's financial performance.
“These macro and external factors were further exacerbated by the poor performance of our wholesale division. This was to some extent expected due to the decision to exit our US operations and the sale of brand rights in non-core regions. However, this segment continues to prove difficult.”
He added that the group had made “significant operational progress” despite “short-term challenges”.
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Wholesale sales were affected by the company's decision to exit the U.S. market and “broader market structural changes,” including the closure of many department stores.
Superdry said it had stepped up cost-cutting efforts as its debt remained at around £29m at the end of the half year, an improvement from net debt of £38m in the same period last year.
The company expects to save £40m this financial year, £5m more than previously expected.
The company is also considering selling brand rights in other regions and selling off old inventory to raise cash to reduce debt.
Last summer, Superdry also approached specialist private investor Hilco for a £25m loan at a high interest rate of 10.5% above the Bank of England's base rate.
