Superdry has announced the appointment of Kim Zaheer as interim Chief Financial Officer (CFO) as it released its annual financial results.
- Zaheer brings extensive experience to Superdry, having previously served as finance director at Dreams for over a decade.
- The appointment coincides with Superdry’s reported group revenue decline of 22%, highlighting significant financial challenges.
- Despite the financial setbacks, the company achieved over £40 million in cost savings and improved its gross margin by 2.2 percentage points.
- Superdry sets sights on future growth, targeting higher revenue and gross margins for the following fiscal year.
Superdry has appointed Kim Zaheer as its interim CFO, signalling a strategic move amidst challenging financial times. Zaheer, who joined Superdry earlier this month, has an impressive resume, including a significant tenure as finance director at the bed retailer Dreams. He succeeds Giles David, the prior interim CFO since January.
The timing of Zaheer’s appointment aligns with Superdry publishing its financial results to Companies House for the year ending 27 April. These results indicate a substantial 22% fall in group revenue, amounting to £488.6 million, attributed to underperformance in its wholesale division along with weakened retail sales. The company recorded a pre-tax loss of £67.7 million, showing a stark contrast to the previous year’s £148.1 million loss.
In response to these challenges, Superdry has prioritised a cost reduction strategy, having realised savings exceeding £40 million over the past year. This cost-saving initiative has contributed to a 2.2 percentage point enhancement in the gross margin, now at 55%. This improvement is a result of a shifting channel mix and price inflation, tempered by markdown activity undertaken to clear outdated stock.
Additionally, Superdry has notably reduced its inventory levels, scaling down from a peak of 18.9 million units in fiscal year 2019 to 7.2 million units by the end of fiscal year 2024. Looking ahead, the company has projected revenue targets between £350 million and £400 million for the upcoming fiscal year, with expectations of a slight gross margin rise.
The beginning of the autumn/winter season has been promising for Superdry, reflecting a notable improvement in like-for-like sales, particularly in cold-weather apparel such as padded jackets and knitwear. The first half of the fiscal period up to October suggested a marked enhancement in performance compared to the previous year. Despite challenging market conditions, Superdry remains committed to executing its restructuring and turnaround strategy to leverage brand strength and boost its digital footprint, ensuring the company’s long-term viability and profitability.
Superdry’s recent strategic moves, including the appointment of Kim Zaheer, demonstrate its proactive stance in overcoming financial challenges and aiming for a sustainable future.
