New boss at Supergroup starts review

Supergrpoup boss Euan Sutherland
Supergrpoup boss Euan Sutherland

Former Co-op boss Euan Sutherland has launched a shake-up of fashion business SuperGroup as half-year profits plunged by nearly a third.

Mr Sutherland said he was reviewing every aspect of the group - which owns the Superdry brand - less than two months after taking over as chief executive, and had already identified areas of improvement.

It is the latest corporate turnaround to be initiated by Mr Sutherland, who walked out of the Co-operative Group earlier this year claiming it was “ungovernable” .

He took over at Supergroup in October and one of his first tasks was to warn that full-year profits would be lower than expected, at £60-£65 million, after mild weather hit demand for winter clothes.

Results for the half-year to October 25 showed the scale of the task, with underlying operating profits down 32 per cent to £12.1m, though reported pre-tax profits rose sharply due to the impact of one-off charges last year.

The group also warned that the additional stock clearance now needed meant that full-year profit margins would be flat - revised down from the 0.25 per cent improvement previously expected.

“SuperGroup is an exciting business with a strong brand and significant growth opportunities which, during this period, has suffered from widely publicised external factors,” he said.

“Additionally, I have identified that there are some parts of our operations that we can improve.

“I am reviewing every aspect of the business, including the execution of our strategy, cost management and capital allocation and will report our conclusions in the spring.”