Superdry Share Discussion Threads

[stokiematt] 02/11/2018 10:54

I've added this to my portfolio over the last week.

I think the current issues are self inflicted or within the company to resolve.

The warm autumn I would say means a delay in the sale of their big ticket items coats/jumpers. It doesn't necessarily mean they won't be sold at all. If the weather forecasts are true then we could be in for a very cold winter. Hopefully, that will translate into good Christmas numbers.

[porsche1945] 27/10/2018 11:02

Back down to a couple of quid then taken private again by Dunkerton.

[philanderer] 25/10/2018 10:54

Just seen Superdry is opening shortly in uxbridge replacing a Gap store.

[clocktower] 22/10/2018 14:37

WOW must have a lot further to fall reading what Julian is stated as having said. Hang onto your shorts, this is going down down even further imo. DYOR.

[porsche1945] 21/10/2018 19:25

As these have collapsed by two thirds my only surprise is that Super are not in the Woodford suicide note, i mean portfolio.

[porsche1945] 21/10/2018 08:24

Brand looks tired, a bit chavvy, they never concentrated enough on the online, too many concessions. These are in freefall like UK house builder shares....brexit recession on the way, time for defensives.

[elsa7878] 18/10/2018 13:06

Newbury 50% off sale. Completely empty store.....admittedly 11 am on a Wednesday but still...

[mikepokerface] 17/10/2018 12:03

To pick up on the press’ mauling of the word ‘Superdry̵7; the directors competence is perhaps well illustrated by a brand of a more successful competitor – ‘MisguidedR17;

Superdry is a company whose woes are self inflicted. With the right management team in place all the infrastructure is in place for Superdry to be successful. The failings are short term - brand over exposure on garments and lack of seasonal range can be addressed very quickly.

Brand direction
The appointment of Brigitte Danielmeyer was a step in the right direction – but she isn’t on the main board. Now Julian Dunkerton has left the building who is steering the creative direction? You suspect it might be the MD, which is very worrying.

Brand exposure on garments is still way over the top (when the earth are the directors going to hear that message) but as a headline brand ‘Superdry̵7; is not damaged – it’s a good umbrella. The stores are moody, well staffed and nicely merchandised. Recently I would love to have bought a T-shirt but not with ‘Superdry̵7; spattered all over the front.

The quality of the product is excellent, the emphasis needs shifting to style and design and radically downsizing brand prominence across the range. Present the garment brand in a new micro way for instance.

Development of seasonal ranges can only be advantageous.

Finance
Financial control seems very lax – the 2018 accounts had a £20 million currency write off. Now they have just announced a further £8 million. Whose responsibility is this – the recently departed finance director or incumbent?

We frequently hear the board describe Superdry as cash generative – this seems to be a misnomer for ‘we can waste money as there is lots of it’

Payment of a special dividend indicates a poor grasp of investor relations – this would have been much better used buying and cancelling own shares.

Property
An £8 million write down in 2018 on a single store in Berlin was breathtaking. Again whose responsibility was this?

Occasionally noticing UK stores I like the mood and ambience of Superdry stores but the locations are often dire – eg Gatwick South Terminal

Again matters of immediate competence – not substance – easily addressed.

The curse of the mid-caps
Many decent businesses have been ruined by a mediocre unchallenged board of directors flying them into the ground.
The management at Next would have Superdry back on the growth track in 12 months.

[superslickrick10] 16/10/2018 14:33

This is cheap now.

I've stocked up.

[paulhunt1] 16/10/2018 10:09

Also when whatever brexit fudge is agreed could be a real positive here given the pan european nature of the business

[paulhunt1] 16/10/2018 10:06

Looking at this now even if the 10m hit is real full year (remember many of the hoddie buys may be pushed back into late Oct) we are still looking at EPS of 90+. This gives us a current P/E of what 8. Even with anemic growth of 6% or so gives a peg not much over 1

No debt and a dividend yield of 5% (8% with special). Normal dividend covered 3x and main capex over as store roll out slows.

We may have idiots at the helm but the investment case is strong in my opinion. If private equity could do a deal with Dunkerton could see this taken private again.

Just my thoughts. Am adding here

[bookbroker] 16/10/2018 08:17

That I agree!

[nerdofsteel] 16/10/2018 08:10

The brand is old hat, teenagers used to be into the brand but have now largely deserted it and it's been hijacked by middle age people.

[mr hangman] 15/10/2018 14:15

Got a nice 50% sale there at the moment

[ny boy] 15/10/2018 11:47

You do wonder what the rent bill is on that regent street flagship store, taken out when everything was dandy

[ny boy] 15/10/2018 11:24

It’s always been a nonsense stock, just upmarket gap wear with fancy Japanese lettering and logos.

Short to 119.5p

[clocktower] 15/10/2018 11:19

The writing was on the wall when those close to the company were selling off shares back in August. However the slide started in January and it looks like anyone holding since then has not only got Superdry stock but put through the wringer and have been well and truly dried out.

[jurgenklopp] 15/10/2018 11:05

They definitely missed an opportunity with online sales which they are finally addressing.

I went into one of their shops during the summer as my daughter wanted to buy some clothes before starting college - did not realise how expensive 'faux Japanese' was !!
Even my daughter baulked at the prices and she's not normally one to pay attention to costs.

There is still a very good business in there but a serious rethink of pricing and a serious cranking up of the online side is required.

[porsche1945] 15/10/2018 10:34

Super never got their online act together early or well enough...too many expensive bricks and mortar outlets, alot of the gear looks chavvy and UK heading down the brexit toilet with a trashed currency....all this stuff manufactured abroad so costing impoverished UK buyers more, it writes itself. These could be heading back to 2 quid a share

[danny baker] 15/10/2018 10:02

It's not inside knowledge to know that freakishly warm October weather will impact on clothing sales. It will affect other retailers too.

[pugugly] 15/10/2018 08:43

Downside taraget blasted - reduced - if at all - to < 750

[ed 123] 15/10/2018 08:32

"Inside knowledge" ?

Surely not. That would be illegal.

[1bonanza] 15/10/2018 08:29

Fall back to mid 7s possible here. Yes JD made a good escape, some inside knowledge last week too by the looks.

[ed 123] 15/10/2018 08:27

Nicely timed sale by Dunkerton. :-O

Wonder what those who bought the shares are thinking today?

(Not holding any myself)