Superdry finds £3.9m accounting error
13 Dec 2019
Fashion brand Superdry has become the latest retailer to announce its reporting has contained accounting errors, with the company disclosing a £3.9m adjustment related to stock handling which has reduced profits for the second half of the year
13 Dec 2019
The company, which has recently been brought back under the control of co-founder Julian Dunkerton, has faced a challenging year as sales of its upmarket brand have slumped.
In its interim results for the 26 weeks ended 26 October 2019, Superdry stated: ‘Following an internal accounting review, we have booked charges in the period of £3.1m relating to accounting estimates for inventory and £6.9m in relation to debt recoverability.
‘In addition a prior year, non-cash adjustment to stock of £3.9m has been recognised, reducing H2 19 profit.’
Superdry reported a £4.2m loss in its half year results compared to a £26.4m profit in the same period a year ago.
Julian Dunkerton, founder and CEO, said: ‘At this halfway point in our financial year, I am pleased with the progress we have made to comprehensively reset Superdry. We're doing this through our product and brand, our physical and digital retail operations and a renewed focus on the retailing basics.
‘We are only eight months into a process that will take two to three years, but I have great confidence in the strength of our new executive leadership team.
‘I am also pleased with the trajectory of performance we have seen from Q1 to Q2 and subsequently into our peak trading period, which gave us our biggest online trading day ever. However, we remain cautious about the challenging market conditions over the peak trading period.’
Deloitte has been the company’s external auditor since 2017. According to the 2019 annual report, the firm was paid £961,000 in audit fees for the year, with fees for other services and the auditing of overseas subsidiaries bringing the total to £1.075m.