On Friday, struggling British apparel firm Superdry (SDRY.L) contemplated a 20% stock raising sponsored by founder and CEO Julian Dunkerton.
The business, whose shares have plunged 37% over the last year, has lowered its earnings outlook from “broadly breakeven” to 615 million pounds to 635 million pounds ($771-$796 million).
Superdry, which cautioned on earnings in January, said February and March retail sales fell short.
It stated the cost-of-living problem and adverse weather affected spring-summer sales.
Superdry claimed its wholesale sector continues to underperform.
Superdry sold its Asia-Pacific intellectual property rights to South Korea’s Cowell Fashion Company (033290. KQ) for $50 million last month.
Bantry Bay, Superdry’s lender, supports the shareholder-approved agreement.
Superdry also found 35 million pounds in cost reductions.
“We need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base,” added Dunkerton.
“My belief in the Superdry brand is stronger than ever, which is why I’m prepared to provide material support to any equity raise undertaken,” he said.
