Superdry CEO buys in after losses widen

The chief executive, along with a handful of directors, took advantage of the relaxation of share purchase restrictions after the results were published. Superdry directors have been locked in a ‘close period’ since the end of April, which prohibits directors from taking advantage of inside information to buy or sell shares. In May, the company opted to delay the planned release of its results in July in response to the coronavirus pandemic. This left management unable to purchase Superdry shares for around five months.

The company’s results revealed that its pre-tax losses had deepened to £167m, from £89m last year. Revenues fell by nearly a fifth to £704m, which the company attributed to the pandemic, along with “a planned move away from persistent discounting”. 

While Superdry has made efforts to reduce the amount of promotional activity it does since Mr Dunkerton’s return last year, the pandemic has forced it to discount more clothing in a bid to clear excess stock. The results coincided with the launch of its new autumn and winter collection, which is the first collection overseen by the chief executive since his comeback.

Mr Dunkerton was joined by chairman Peter Williams and audit committee chairman Alastair Miller in picking up Superdry shares. Mr Williams and Mr Miller acquired £72,046 and £27,112 in stock, respectively.

Peel Hunt forecasts 2021 adjusted pre-tax losses and losses per share of £25.8m and 25.2p, respectively, before returning to profits and earnings per share of £22m and 21.5p in 2022.