The tide brand died of too hot British brand Superdry to close the store layoffs stock price fell 35% today

British clothing retailer Superdry PLC (SDRY.L) opened the stock market with a sharp drop of 17.2% after the profit of the profit warning fell by a maximum of 43% on Tuesday.

The British company used the “Difficult trading period” as the headline of the interim report, indicating that the November and December continued to be affected by the warm weather, which had a negative impact on the November earnings of £11 million. However, the company claimed that Black Friday performed well, but The level of profitability in December may be similar to that in November.

Extremely dry, at the same time, uncertainties such as consumer sentiment, weather factors, and the political impact of Brexit will have an impact on the peak holiday season, which will also cause 2H's earnings to be extremely uncertain.

British companies now expect a pre-tax profit of £55 million to £70 million in the current fiscal year, compared with £97 million in pre-tax profit in the previous fiscal year. At the beginning of last month, the company announced preliminary data on mid-term sales that it had a profit of 10 million a year. The pound's retreat, the new profit test shows that at least 20 million pounds of retrogression, up to 42 million pounds.

For the first half of the fiscal year ended Oct. 27, the pre-tax profit of the extremely dry and continuing operations decreased from 25.3 million pounds to 12.9 million pounds, plunged 49.0%, and the actual operating profit was 26.4 million pounds, an increase of 190.1 compared with the mid-2010 period of 9.1 million pounds. %, the increase mainly comes from the change in the fair value of foreign exchange contracts.

Group CEO Euan Sutherland said that the business in the first half of the year was in a tough environment – ​​unfavorable weather, consumer purchases were entirely driven by discounts, but the company is launching an 18-month innovation and diversification project.

Under the new transformation strategy, the new plan includes accelerating the launch of new products, launching a new children's wear business next year (expecting a margin of profit of £10 million in FY 2022) and a pure organic cotton product line that fully realizes organic cotton raw materials in 2040. In addition, the company will continue to promote the digital business of B2B, third-party online platform, and expansion in the US and China markets, expecting international business income in FY 2020 to reach 400 million pounds.

Under the new plan, the company will adopt lower-priced Chinese supplier products and guarantee brand authorization for the accessory series while ensuring the original quality.

Closed stores and layoffs are also in the new transformation strategy. The assessment and implementation will be completed in March 2019. It will also include reducing the rent renewal to reduce the operating expenses of £50 million by 2020. In addition, through the figures The strategy allows capital expenditures to be reduced by between £35 million and £40 million per year.

Extremely dry has previously announced sales data for the first half of the fiscal year ending October 27. During the period, the Group's global brand revenue (excluding China) increased by 6.4% year-on-year to 831.8 million pounds; revenue increased 3.1% to 414.6 million pounds, wholesale Channels and e-commerce increased by 7.8% and 6.9% to 171.8 million pounds and 65.4 million pounds respectively, while retail store sales fell 2.3% year-on-year to 177.4 million pounds.

As of the end of October, the Group's self-operated stores increased from 233 to 249, and the number of licensed and agency stores increased from 372 to 446. In the first half of the year, the proportion of digital business revenue increased from 25.2% to 26.9%.

Gross profit margin and operating profit margin recorded 56.4% and 3.6% respectively, down 70 basis points and 310 basis points respectively from 57.1% and 6.7% in the same period of last year, and operating profit was 14.9 million pounds, compared with 27 million pounds in the same period of last year. The price plummeted 44.8%.

In addition to the fundamentals of the company's frustration, the British company is now under pressure from group founder Julian Dunkerton to return to the group to seize power.

After the announcement of the complete withdrawal from the company in March, the extremely dry stock price plunged from a record high of 2,102.00 pence. After the second profit warning this fiscal year last month, Julian Dunkerton severely criticized the management strategy led by Euan Sutherland to cut SKU and product transformation, and claimed that the Superdry PLC was extremely dry and had embarked on a “completely wrong track” and could not The "30 years of hard work" fell into disrepair. After the first profit warning in October, he has threatened to return to the British clothing retailer.

Julian Dunkerton stepped down as CEO in 2014 and Euan Sutherland took over. In March of this year, Julian Dunkerton resigned as chairman.

Currently Julian Dunkerton still maintains the position of the largest shareholder with a 18.5% shareholding. His claim is to strengthen the supply of traditional products such as logo T-shirts, sweaters and jackets in branded stores, providing "correct" styles and reducing other non-core SKUs; at the same time online channels should be "fast fashion", a substantial increase SKU to attract young and new customers.

As of No Fashion Chinese Network, 10:01 AM local time in London, Superdry PLC (SDRY.L) was extremely dry and further blew 34.43% to 376.04 pence. So far this year, it has plunged more than 80%, with a market value of only 300 million pounds, and the peak market value of the company. Nearly 2 billion pounds.