Statement re China Joint Venture
Superdry Plc
(" Superdry " or "the Company")
18 June 2020
Superdry Takes Back Full Control of its Brand in China
Superdry today announces that following a review of its long-term business plan for its operations in China, it will be taking back full control of the Superdry brand in China. It has reached an amicable agreement with its current local partner Trendy International to exit their joint venture, Trendy and Superdry Holding Limited. This will leave Superdry free to determine how it will trade in China in the future.
The decision is part of Superdry's transformation plan for the Group, putting in place the right infrastructure and business models in each of its core markets, and has been accelerated by the impact of COVID-19. The joint venture was formed in 2016 and has 25 owned and 41 franchise stores in China. The owned retail stores are due to close by the end of August, while the franchise partners in China will end their relationships by the end of the year. Superdry anticipates that approximately £6m in total, of which £3m was recognised at HY20, will be written off in its FY20 accounts as a result. It is not currently expected that Superdry will incur further costs of closure or need to inject additional material cash to support the wind-up of operations.
Superdry recognises that it has many loyal customers in China and as it resets its brand, Superdry will assess the right operating model for China to maintain a presence in what remains a large and attractive market.
Julian Dunkerton, Chief Executive Officer, said:
'I believe that China represents a huge opportunity for Superdry in the longer term. As the way people are shopping there changes, it makes sense for us to shift our focus to the growth channels of online and wholesale. Combined with the improvements we are making to our product ranges, I am confident that this is the right time for us to take back full control of our brand in China and to re-position our operations in the region to deliver profitable future growth for Superdry.'
For further information:
Superdry
Nick Gresham nick.gresham@superdry.com +44 (0) 1242 586747
Adam Smith investor.relations@superdry.com +44 (0) 1242 586747
Media enquiries
Tim Danaher, Imran Jina superdry@brunswickgroup.com +44 (0) 207 404 5959
Notes to Editors
The Superdry brand is obsessed with design, quality and fit and committed to relentless innovation. We design affordable, premium quality clothing, accessories and footwear which are sold around the world. We have a unique purpose to help our consumers feel amazing through wearing our clothes. We have a clear strategy for delivering continued growth via a disruptive multi-channel approach combining Ecommerce, Wholesale and physical stores. We operate in 61 countries and have over 4,600 colleagues globally.
Cautionary statement
This announcement contains certain forward-looking statements with respect to the financial condition and operational results of Superdry Plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Superdry Plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for this announcement on behalf of Superdry is Ruth Daniels, Group General Counsel and Company Secretary of Superdry.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
Latest directors dealings
- 1 hour ago River Global Plc
- 3 hours ago Pipehawk
- 3 hours ago Frasers Group
- 3 hours ago DP Aircraft I Limited Pref
- 3 hours ago Cropper (James)