Superdry has withdrawn its profit guidance of broadly breaking even due to lower than expected retail sales in March.

The company says that while sales continue to demonstrate good like-for-like growth, this is at a slower rate than anticipated.

The clothing retailer attributed lower sales to the ongoing cost-of living crisis and poor weather leading to a lack of demand for spring and summer clothing.

Superdry said that lower sales had impacted its revenue performance, which is now expected to be between £615 million and £635 million for 2023 compared to £609 million last year.

As part of a turnaround plan, the UK brand is considering capital raise options, including an equity raise of around 20 per cent which is supported by the company’s chief executive.

Superdry has also identified cost savings of over £35 million which it says will help turn the business around by the end of 2024. It said this will be achieved through estate optimisation, distribution savings and range reduction.

Commenting on the news Julian Dunkerton, founder and chief executive, said: “My belief in the Superdry brand is stronger than ever which is why I’m prepared to provide material support to any equity raise undertaken. I am confident that we have the right plan and, working together as a team, the business will emerge from the current turbulence stronger than ever.”

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