Superdry's boss Euan Sutherland promises full review after profits dive

Pre-tax profits plunged 74 per cent to £9.9 million

(Reuters)

The new boss of fashion brand Superdry has vowed to carry out a full review of the business as the warm autumnal weather, not enough summer stock in stores, and a complicated supply chain sent profits plummeting by more than 73 per cent.

Euan Sutherland, the former Co-op chief executive, was given the top job at SuperGroup last month and was almost immediately forced to issue a warning that profits would only be between £60 million and £65 million. He said today that profits would remain in line with new expectations.

He added: “I’m reviewing with the team the whole strategy. I don’t expect the entire operation to change though, but I have identified that there are some parts of our operations that we can improve. The supply chain, for example, could be tightened up.”

Sales hit £208.2 million, up 8.4 per cent because more shops were opened, but were down 4.1 per cent on a like-for-like basis in the six months to October 25.

Pre-tax profits plunged 74 per cent to £9.9 million. Sutherland said that there was no tension between him and previous chief executive and founder Julian Dunkerton, despite the latter remaining with the business in a creative role.

Sutherland said: “Jools and I will catch up twice a day every day and at the weekends too. We don’t always agree on stuff and have lots of lively debates, but we both have a passion for this business. My style of management is very consensus-driven and I think we try and reach a decision as a team.”