UK fashion retailer Superdry has announced its plans to raise about $15 million through a new share sale to support its long-term growth plans. The announcement comes as the company reported a decline in revenue and profit for the financial year ending April 24, 2021.
Superdry, known for its casual wear and outerwear, said that the share sale will be conducted through a placing of new shares with institutional investors. The company added that it intends to use the funds raised to invest in its digital transformation, improve its supply chain operations and reduce its debt.
The company's CEO, Julian Dunkerton, said that the share sale is an important step towards strengthening the company's balance sheet and securing its long-term future. "We have made significant progress in the last year, but there is still more to do to deliver our strategic plan," he added.
The share sale is expected to take place in the coming weeks, subject to market conditions and regulatory approvals. The company's shares, which have fallen by about 40% over the past year, closed up 2% on the day of the announcement.
Superdry's financial results for the year ending April 24, 2021, showed a decline in revenue of 21% to £556.6 million, and a loss before tax of £36.7 million, compared to a profit of £41.9 million in the previous year. The company blamed the decline on the impact of the COVID-19 pandemic, which led to store closures and a decline in consumer demand.
Superdry is among a number of UK retailers that have been hit hard by the pandemic, with many facing declining sales and mounting debt. The company's decision to raise funds through a share sale is part of its efforts to strengthen its financial position and invest in its future growth.
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