Superdry has announced that its chief financial officer (CFO), Shaun Willis, will leave the company, after the fashion retailer recorded a -23.5% drop in revenue in the first half of the current financial year.

The group stated that in the 26 weeks to 28 October 2023, H1 year-on-year revenue was impacted by the “challenging consumer retail market, unseasonal weather, as well as the underperformance of our wholesale segment”.

Retail revenue fell -13.1% in this period, whilst wholesale revenue also dropped by -41.1%.

Willis is the fourth CFO to leave the firm in five years, with Giles David set to replace him. David has been appointed interim CFO and will join the business and the board on 29 January and 1 April respectively.

The fashion chain also saw declines in the most recent quarter. In the 12 weeks to 20 January 2024, group revenue dropped by -13.7%, whilst wholesale revenue fell by over a third (-38%).

Founder and chief executive officer at Superdry, Julian Dunkerton, said: "This has clearly been a difficult period for Superdry. A challenging consumer retail market, set against a backdrop of macroeconomic uncertainty and some remarkably unseasonal weather conditions have all combined to weaken the financial performance of the Group. These macro and external factors have been further exacerbated by the underperformance of our Wholesale segment. Whilst, to some extent, this was expected due to the decision to exit our US operations and the sale of the brand rights in non-core territories, the segment continues to prove challenging.

"Despite the near-term difficulties, we have made significant operational strides over the half year as part of our ongoing turnaround. Our efforts continue to focus on rightsizing the cost base and creating an operating model suitable for the needs of the organisation over the longer-term. Christmas trading proved challenging, and we do not expect market conditions to get any easier in the near-term. However, I firmly believe we are taking the right steps for the business and the brand, to return Superdry to profitability."

In a statement, Superdry said its outlook for the rest of the year remains "challenging and unpredictable", with sales performance not helped as a result of "extreme weather events".

The group expects full-year profitability to be impacted by the weaker trading and internal expectations remain consistent with that view.

Lead equity analyst at Hargreaves Lansdown, Sophie Lund-Yates, added: "The latest instalment of the Superdry saga isn’t a pretty one. The area of the market that Superdry is targeting is a particularly difficult point on the spectrum. It’s not high end enough to be considered luxury, and it’s not a bargain option either. There have been well-documented slip ups operationally too, including poorly managed inventory. The net effect is one of widening losses and a worrying debt pile.

"The group’s substantial physical footprint adds pressure for sales volumes to improve sooner rather than later. Superdry is famous for its outerwear and warmer clothes, so the recent cold snap has added a bit of warmth into numbers, but not enough to thaw remaining challenges."

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