Superdry shares jump as UK fashion brand returns to profit

Bloomberg

Superdry Plc shares jumped as the UK fashion brand returned to profit after Covid-19 pandemic-induced losses.
The retailer, known for its logo T-shirts and bright colours, reported adjusted profit before tax of £21.9 million ($24 million), compared with a £12.6 million loss a year earlier. The shares rise as much as 13% in London.
The return to profit “marks an inflexion point that gives confidence in its positive long-term trajectory,” Wayne Brown, an analyst at Liberum, wrote in a note to clients.
The gain in profitability “is a clear sign of brand health.”
Still, store visits to Superdry haven’t yet recovered to pre-Covid levels and the cost-of-living crisis is hitting consumer spending. Many apparel retailers are struggling as shoppers cut back on non-essential purchases.
“These are exceptional times for retail and for the economy more generally, and like all brands we’re having to work harder than ever to drive performance,” said Chief Executive Officer Julian Dunkerton.
Superdry needs to refinance an asset-backed lending facility due at the end of January and said talks with lenders have been going well.