Join our community of smart investors

Superdry chief bets on ‘premium’ turnaround

Superdry's Dunkerton dips in
June 9, 2022

Superdry (SDRY) has been falling out of fashion as inflation and rising living costs threaten to disturb the post-pandemic rebound. 

The clothing brand’s difficulties first came to light in 2018 after a boardroom tiff led to the temporary removal of co-founder and chief executive Julian Dunkerton. Despite his return to the business in 2019, the shares have continued to fall. Dunkerton has since pioneered a “premium” revamp to mend profitability by steering away from discounts and increasing full-price sales. The signs have been promising so far. The apparel retailer swung to a £4mn half-year profit to 23 October, compared with an £18.9mn loss in the same period last year.

But investors were unmoved by the green shoots of recovery in its latest trading update, and the shares continued to fall in line with sector-mates Joules (JOUL) and Ted Baker (TED), whose low valuation has spurred private equity takeover bids. Superdry’s forward price/earnings ratio of 8.5 makes the shares “look extremely cheap”, according to broker Liberum, which expects the retailer to return to profit in 2022. 

The valuation and turnaround progress could be behind Dunkerton’s recent £1.15mn purchase of 805,172 shares at an average price of £1.42. Dunkerton has steadily increased his stake in recent years, spending £1mn in October 2021, on top of a £1.5mn buy-in a year earlier. 

Investors may have appreciated this vote of confidence, as the shares gained 7 per cent in the week after Dunkerton’s latest purchase.

 

Buys    
CompanyDirector/PDMRDatePrice (p)Aggregate value (£)
AJ BellEvelyn Bourke31 May 22287150,000
AJ BellWilliam Findlay Mackay (PDMR) *31 May 22286149,996
AssuraJayne Cottam (cfo) *30-31 May 227137,994
Bezant ResourcesColin Bird (ch)27 May 220.120,263
CranswickTim Smith (ch)31 May 223,05641,256
DCCMark Breuer (ch)27 May 225,58755,870
DP EurasiaShyam Bhartia/Hari Bhartia/Pratik Pota *27 May 2254124,200
First TinCharles Cannon-Brooke (ch) *31 May 2219154,008
FoxtonsNigel Rich (ch)30 May 223954,180
FoxtonsPeter Rollings01 Jun 223853,200
HostmoreDavid Lis30 May 224336,322
HostmoreGavin Manson (ch)30-31 May 2243150,158
HostmoreAlan Clark (cfo)01 Jun 224241,970
IntegraFinRita Dhut27 May 2229243,839
International Personal Finance Gary Thompson (cfo) *31 May 228425,275
IOGAndrew Hockey (ce)01 Jun 222421,465
Johnson MattheyRita Forst *27 May 222,197 †21,967 †
Oxford Nanopore TechnologiesSarah Gordon Wild30 May 2233749,735
Plant Health CareDr Christopher Richards (ce)27 May 221275,274
RankRichard Harris (cfo) *30 May 2211082,650
RenewiAnnemieke den Otter (cfo)02 Jun 22701 †105,137 †
RotorkPeter Dilnot *27 May 2226726,703
S4 CapitalScott Spirit (PDMR)30 May 2229749,555
SuperdryJulian Dunkerton (PDMR)27 May 221421,144,955
TriadJohn Rigg (ch)27 May 22110220,000
TriadCharlotte Rigg27-30 May 2211474,380
Venture LifePaul Mcgreevy (ch)30 May 223450,005
VistryGreg Fitzgerald (ce)27 May 2290099,372
CompanyDirector/PDMRDatePrice (p)Aggregate value (£)
Anglo American Ruben Fernandes (PDMR)31 May 223,831383,100
NatWestAndrew McLaughlin (PDMR)31 May 22227340,770
*Spouse/Family/Close Associate. † Converted from € / $