Join our community of smart investors

Superdry founder makes comeback

The clothing chain is struggling, but the return of Julian Dunkerton could signal a turning point
April 3, 2019

At a general meeting on 2 April 2019, Superdry (SDRY) shareholders voted by an extremely narrow margin to bring back one of the company’s original founders, Julian Dunkerton. It followed an extensive campaign by Mr Dunkerton to woo both shareholders and the press, to convince them his return is crucial in turning around the company’s ailing fortunes.

IC TIP: Sell at 442p

Most of the remaining directors had promised to resign if Mr Dunkerton was voted back in – which they promptly did shortly after market close on the same day. That included chairman Peter Bamford, chief executive Euan Sutherland and chief financial officer Ed Barker. UBS and Investec also both resigned as brokers to the company.

Mr Dunkerton will now assume the role of chief executive, while Peter Williams – an ally of Mr Dunkerton and former Boohoo (BOO) chairman – will step in as Superdry’s new chair. Analysts at Peel Hunt said the recruitment of a "heavyweight" finance chief should be a "priority", particularly as "short-term disruption is inevitable". The broker also warned that with the "majority of external investors voting against [Mr Dunkerton’s] return" the company "will need to provide a clear view of the immediate future to investors".

Mr Dunkerton has been vocal in his criticism of the brand’s recent product ranges and selling tactics, most of which he is likely look to change. But analysts seem wary about much this might cost in the short term – not to mention the expense of recruiting experienced managers to fill now-vacant roles. Factor in the difficult retail backdrop, and Peel Hunt reckons short-term forecasts might "come under pressure".