Britain’s Superdry considering 20% equity raise

Struggling British fashion brand Superdry (SDRY.L) said on Friday a potential equity raise of up to 20% backed by founder and CEO Julian Dunkerton was among funding options being considered.

The group, whose shares have fallen 37% over the last year, also withdrew its profit guidance of “broadly breakeven” for its current year and is now forecasting revenue in the range of 615 million pounds to 635 million pounds ($771-$796 million).

Superdry, which had warned on profit in January, said retail sales in February and March, did not meet its expectations.

This was partly due to the cost-of-living crisis impacting spending and poor weather hitting demand for spring-summer items, it said.

Superdry said the performance of its wholesale division continued to lag the rest of the group.

Last month, Superdry agreed to sell its intellectual property assets in much of the Asia Pacific region to South Korea’s Cowell Fashion Company (033290.KQ) for $50 million.

This report’s information was first seen on REUTERS; to read more, click this link.