Aankondiging • May 22
Superdry Reportedly Plots Emergency Sale Process If Creditors Block Rescue Plan Superdry plc (LSE:SDRY) is preparing to run an emergency four-week sale process if creditors block its Founder's plans to inject up to £10 million of his own money into the fashion chain in a bid to stave off insolvency. Sky News has learnt that the accelerated M&A process would be launched if a restructuring plan is not approved by creditors in the coming weeks. Under the proposed survival plan, Julian Dunkerton would stump up either £8 million in an open offer available to other shareholders or £10 million in a placing that would only be accessible to him. The share sale would precede Superdry's delisting from the London Stock Exchange. The restructuring plan would need to be approved by creditors, including landlords, in the coming weeks. According to a document circulated to creditors in recent days and seen by Sky News, rejection of the restructuring plan would be followed by a four-week sale process for Superdry, with the likely outcome of a pre-pack administration deal. Sources said that Mr. Dunkerton's willingness to inject such a substantial chunk of his own fortune into the company reflected his confidence in the company's turnaround prospects. Superdry's shares have slumped to a series of record lows in recent months amid dire trading and a failed sale process. Last month, Sky News revealed that M&G plc (LSE:MNG), the asset manager which owns Superdry's store in central London, was weighing a challenge to its rescue plan. M&G is believed to have been alarmed by the absence of their participation in a mechanism to allow creditors to benefit from any future recovery in the retailer's performance. The restructuring plan will not entail immediate shop closures but will impose sizeable rent cuts on landlords of dozens of Superdry outlets. Sources said the firm is also planning to pull out of a number of overseas markets, including the US. On May 21, 2024 morning, shares in the company were trading at around 6.7 pence, giving the indebted company a market capitalisation of less than £7 million. It recently agreed an increased borrowing capacity with Hilco Capital Limited, one of its existing lenders, while it also owes tens of millions of pounds to Bantry Bay. Mr. Dunkerton, who in 2019 returned to the company having previously been ousted, owns just under 30% of the shares. In recent months, Superdry has raised cash by offloading its brand in regions including India and Asia-Pacific. Superdry declined to comment. Aankondiging • Apr 17
Superdry plc Announces Intention to Delist from the London Stock Exchange Superdry plc previously announced that it has been exploring various material cost saving options as part of a broader turnaround plan that positions the Company for long-term success. On 16 April 2024, in support of that objective, the Company announced that C-Retail Limited (the “Plan Company”), a wholly-owned subsidiary of the Company which owns the leasehold portfolio of the Superdry group (the “Group”) from which its UK store retail business trades, is launching a restructuring plan pursuant to Part 26A of the Companies Act 2006, which will principally involve a restructuring of its UK property estate and retail cost base (the “Restructuring Plan”). The Restructuring Plan is a key element of the Company’s turnaround plan that is intended to help the Company deliver its new, more financially sustainable, target operating model. In order to support the Company’s transition to this new target operating model over the coming years, Superdry is also announcing an equity raise that will provide necessary liquidity headroom (the “Equity Raise”), as well as its intention to delist from the London Stock Exchange (the “Delisting”), which will allow the Company to benefit from significant cost savings associated with being listed and implement its turnaround plan away from the heightened exposure of public markets. The Equity Raise is fully supported and underwritten by Julian Dunkerton, Superdry’s CEO and Co-Founder. Given the material changes to the Company’s business envisioned under the new target operating model, the Company considers it best to implement these changes away from the heightened exposure of public markets. In addition, the Company believes it can achieve significant annual cost savings from the Delisting that will contribute to delivering its target operating model. As a result, subject to shareholder approval at the General Meeting, the Company intends to make the relevant applications to effect the cancellation of the listing of its shares on the Official List maintained by the Financial Conduct Authority (“FCA”) and their trading on the London Stock Exchange’s Main Market for listed securities. The Company intends to explore the implementation of a matched bargain facility with a third party matched bargain facility provider in the event the Company is delisted. This will facilitate shareholders buying and selling shares on a matched bargain basis following the Delisting. Delisting is expected in July 2024. New Risk • Apr 15
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: UK£7.92m (US$9.86m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (42% average weekly change). Market cap is less than US$10m (UK£7.92m market cap, or US$9.86m). Minor Risks Negative equity (-UK£41m). Currently unprofitable and not forecast to become profitable over next 2 years (UK£16m net loss in 2 years). Shareholders have been diluted in the past year (22% increase in shares outstanding). New Risk • Mar 25
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 22% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (38% average weekly change). Minor Risks Negative equity (-UK£41m). Currently unprofitable and not forecast to become profitable over next 2 years (UK£16m net loss in 2 years). Shareholders have been diluted in the past year (22% increase in shares outstanding). Market cap is less than US$100m (UK£24.1m market cap, or US$30.3m). Aankondiging • Mar 18
Superdry plc(LSE:SDRY) dropped from FTSE All-Share Index (GBP) Superdry plc(LSE:SDRY) dropped from FTSE All-Share Index (GBP) Aankondiging • Feb 20
Superdry's Founder Reportedly in Talks with Julian Dunkerton About an Offer to Take the Fashion Retailer Private A prominent US investor is among the parties being courted by Superdry plc (LSE:SDRY)’s Founder as he assembles an offer to take the struggling fashion chain private. Sky News has learnt that Davidson Kempner, which has backed a number of UK retailers, is in discussions with Julian Dunkerton about backing an offer for Superdry. The talks are at a preliminary stage and there is no guarantee that Davidson Kempner will ultimately sign an agreement with Mr. Dunkerton. Their discussions add the US investor, which has backed Jojo Maman Bebe and Oak Furnitureland, and previously held a slug of debt in New Look, to a list of firms examining Mr. Dunkerton's proposals. Others include Retail Realisation (Retail Realisation LLP), a firm backed by the founder of turnaround investor Rcapital. Earlier this month, it emerged that Mr. Dunkerton wanted to buy the majority stake in Superdry that he does not already own, even as the company draws up plans to close stores and cut jobs. Mr. Dunkerton, who in 2019 returned to the company having previously been ousted, owns just under 30% of the shares. On 19 February 2024, shares in the retailer closed at 33.65 pence, giving it a market capitalisation of less than £35 million. The company also has more than £100 million of borrowings, after securing funding from Bantry Bay Capital and Hilco. In recent months, Superdry has raised cash by offloading its brand in regions including India and Asia-Pacific. Late last year, its shares sank to a record low after it blamed abnormally mild autumn weather for weak sales. After a trading update last month, the shares crashed to a record low. "The consumer retail market remains challenging and unpredictable, and sales performance has not been helped by the extreme weather events of the summer being followed by one of the warmest autumn seasons on record, which persisted through the peak Christmas trading period," Superdry said in that statement. Davidson Kempner, Superdry and Mr. Dunkerton declined to comment. New Risk • Feb 16
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 22% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (37% average weekly change). Minor Risks Negative equity (-UK£41m). Currently unprofitable and not forecast to become profitable over next 2 years (UK£16m net loss in 2 years). Shareholders have been diluted in the past year (22% increase in shares outstanding). Market cap is less than US$100m (UK£34.6m market cap, or US$43.6m). Aankondiging • Feb 02
Superdry Gets Takeover Approach from CEO Shares in struggling U.K. fashion brand Superdry plc (LSE:SDRY) doubled in early trading following rumors that founder Julian Dunkerton plans to take the fashion label private and with potential investors circling. A new investor, Norwegian alternative investment fund First Seagull, has built a stake in Superdry of over 5.3%, leading to takeover discussions around the ailing business intensifying. It is thought that the investor views the fashion retailer to be ripe for a bid following various profit warnings over the last year, which has seen the share price fall by nearly 90% over the past 12 months. The acquisitive U.S. fashion group Authentic Brands Group and Sycamore Partners are also thought to have the apparel company on their radar. Superdry is believed to have cancelled a meeting with investors this week, further fueling speculation of a possible bid or move to take the business private. The business has been working with advisors at consultancy PwC to explore options such as a company voluntary arrangement (CVA), broadly the U.K. equivalent of Chapter 11, or other forms of restructuring, under a move that could lead to extensive job cuts and the shuttering of stores. However, Superdry has struggled in recent years, and has gone through a turbulent time after Dunkerton was first ousted and then forced his way back to the helm of the business in 2019 following a boardroom coup. Central to Superdry's problems has been retaining its quirky cool as it expanded rapidly and became ubiquitous. Last month Superdry Dunkerton conceded that the retailer was facing a “difficult period” as it posted widening losses and revealed CFO Shaun Wills would leave at the end of March after three years in post, with the retailer citing a challenging retail market, unseasonably warm weather and the under-performance of its wholesale segment. Superdry said that it had seen some “more encouraging trends” during the recent cold snap in Europe, with sales falling at a slower rate of 13.7% in the 12 weeks to Jan. 20 after the retailer recently flagged that the weak sales will result in “lower than expected” full-year profits, despite taking several initiatives across 2023 to strengthen its balance sheet. “Whilst, to some extent, this was expected due to the decision to exit our U.S. operations and the sale of the brand rights in non-core territories, the segment continues to prove challenging,” Dunkerton said. Reported Earnings • Jan 29
First half 2024 earnings released: EPS: UK£0.029 (vs UK£0.15 loss in 1H 2023) First half 2024 results: EPS: UK£0.029 (up from UK£0.15 loss in 1H 2023). Revenue: UK£219.8m (down 24% from 1H 2023). Net income: UK£2.80m (up UK£15.0m from 1H 2023). Profit margin: 1.3% (up from net loss in 1H 2023). Revenue is forecast to stay flat during the next 3 years compared to a 4.8% growth forecast for the Specialty Retail industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has fallen by 58% per year, which means it is performing significantly worse than earnings. New Risk • Jan 26
New major risk - Revenue and earnings growth Earnings have declined by 6.6% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 6.6% per year over the past 5 years. Minor Risks Negative equity (-UK£53m). Market cap is less than US$100m (UK£13.9m market cap, or US$17.7m). Aankondiging • Jan 20
Superdry plc to Report Q2, 2024 Results on Jan 26, 2024 Superdry plc announced that they will report Q2, 2024 results on Jan 26, 2024 New Risk • Jan 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of British stocks, typically moving 13% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risks Negative equity (-UK£53m). Currently unprofitable and not forecast to become profitable over next 3 years (UK£12m net loss in 3 years). Market cap is less than US$100m (UK£13.9m market cap, or US$17.6m). New Risk • Dec 21
New major risk - Revenue and earnings growth Earnings have declined by 6.6% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 6.6% per year over the past 5 years. Minor Risks Negative equity (-UK£53m). Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (UK£27.3m market cap, or US$34.6m). New Risk • Dec 19
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 3 years. Trailing 12-month net loss: UK£148m Forecast net loss in 3 years: UK£12m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Minor Risks Negative equity (-UK£53m). Currently unprofitable and not forecast to become profitable over next 3 years (UK£12m net loss in 3 years). Share price has been volatile over the past 3 months (10% average weekly change). Market cap is less than US$100m (UK£34.3m market cap, or US$43.8m). New Risk • Nov 12
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of British stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risks Negative equity (-UK£53m). Shareholders have been diluted in the past year (20% increase in shares outstanding). Market cap is less than US$100m (UK£34.6m market cap, or US$42.4m). Aankondiging • Sep 21
Superdry plc, Annual General Meeting, Oct 16, 2023 Superdry plc, Annual General Meeting, Oct 16, 2023, at 08:00 Coordinated Universal Time. Location: The Runnings, Cheltenham Gloucestershire United Kingdom Agenda: To consider Report and Accounts; Remuneration Report; To re-elect Julian Dunkerton as a Director of the Company; To elect Lysa Hardy as a Director of the Company; To re-elect Georgina Harvey as a Director of the Company; To re-elect Alastair Miller as a Director of the Company; To re-elect Helen Weir as a Director of the Company; To re-elect Peter Sjölander as a Director of the Company; To re-elect Shaun Wills as a Director of the Company ; and to discuss other matters. Price Target Changed • Sep 05
Price target decreased by 25% to UK£1.16 Down from UK£1.55, the current price target is an average from 5 analysts. New target price is 132% above last closing price of UK£0.50. Stock is down 58% over the past year. The company is forecast to post a net loss per share of UK£0.0025 next year compared to a net loss per share of UK£1.81 last year. New Risk • Sep 03
New minor risk - Negative shareholders equity The company has negative equity. Total equity: -UK£53m This is considered a minor risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. It should be noted that some of the negative equity could be due to large buybacks of stock, which is not as much of a risk as a company with overwhelming debt, but likewise is not sustainable in the long-term. Currently, the following risks have been identified for the company: Minor Risks Negative equity (-UK£53m). Shareholders have been diluted in the past year (19% increase in shares outstanding). Market cap is less than US$100m (UK£54.9m market cap, or US$69.1m). New Risk • Aug 09
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 18% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks High level of debt (44% net debt to equity). Large one-off items impacting financial results. Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (UK£62.9m market cap, or US$79.9m). Aankondiging • Aug 09
Superdry plc announced that it has received £25 million in funding Superdry plc announced a private placement to issue 10.5% non convertible debt for the gross proceeds of £25 million on August 7, 2023. The transaction included participation from new lender Hilco Capital Limited. Price Target Changed • May 22
Price target decreased by 13% to UK£1.40 Down from UK£1.61, the current price target is an average from 5 analysts. New target price is 84% above last closing price of UK£0.76. Stock is down 49% over the past year. The company is forecast to post a net loss per share of UK£0.13 compared to earnings per share of UK£0.28 last year. Aankondiging • May 05
Superdry plc has completed a Follow-on Equity Offering in the amount of £11.9791 million. Superdry plc has completed a Follow-on Equity Offering in the amount of £11.9791 million.
Security Name: Equity Shares
Security Type: Common Stock
Securities Offered: 15,700,000
Price\Range: £0.763 Aankondiging • May 04
Superdry plc announced that it expects to receive £12 million in funding Superdry plc announced a private placement of 16,000 shares at an issue price of £750 per share for the gross proceeds of £12,000,000 on May 3, 2023. Major Estimate Revision • Apr 27
Consensus EPS estimates fall by 64% The consensus outlook for fiscal year 2023 has been updated. 2023 expected loss increased from -UK£0.097 to -UK£0.16 per share. Revenue forecast unchanged at UK£614.9m. Specialty Retail industry in the United Kingdom expected to see average net income decline 0.3% next year. Consensus price target down from UK£1.66 to UK£1.60. Share price fell 3.2% to UK£0.84 over the past week. Major Estimate Revision • Apr 26
Consensus EPS estimates fall by 64% The consensus outlook for fiscal year 2023 has been updated. 2023 expected loss increased from -UK£0.097 to -UK£0.16 per share. Revenue forecast unchanged at UK£614.1m. Specialty Retail industry in the United Kingdom expected to see average net income decline 0.3% next year. Consensus price target down from UK£1.73 to UK£1.67. Share price fell 4.9% to UK£0.83 over the past week. Price Target Changed • Apr 14
Price target decreased by 22% to UK£1.73 Down from UK£2.22, the current price target is an average from 5 analysts. New target price is 94% above last closing price of UK£0.89. Stock is down 49% over the past year. The company is forecast to post a net loss per share of UK£0.043 compared to earnings per share of UK£0.28 last year. Major Estimate Revision • Mar 24
Consensus EPS estimates upgraded to UK£0.026 loss The consensus outlook for fiscal year 2023 has been updated. 2023 losses forecast to reduce from -UK£0.043 to -UK£0.026 per share. Revenue forecast steady at UK£628.8m. Specialty Retail industry in the United Kingdom expected to see average net income decline 1.9% next year. Consensus price target of UK£2.23 unchanged from last update. Share price fell 5.5% to UK£1.03 over the past week. Reported Earnings • Jan 28
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: UK£0.28 (up from UK£0.44 loss in FY 2021). Revenue: UK£609.6m (up 9.6% from FY 2021). Net income: UK£22.7m (up UK£58.8m from FY 2021). Profit margin: 3.7% (up from net loss in FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 154%. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Specialty Retail industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has fallen by 32% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to UK£1.23, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Specialty Retail industry in the United Kingdom. Total loss to shareholders of 68% over the past three years. Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment improved over the past week After last week's 21% share price gain to UK£1.55, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 11x in the Specialty Retail industry in the United Kingdom. Total loss to shareholders of 65% over the past three years. Major Estimate Revision • Dec 26
Consensus forecasts updated The consensus outlook for 2023 has been updated. 2023 EPS estimate fell from UK£0.15 to UK£0.12 per share. Revenue forecast steady at UK£641.3m. Net income forecast to shrink 52% next year vs 19% decline forecast for Specialty Retail industry in the United Kingdom. Consensus price target down from UK£2.33 to UK£2.19. Share price rose 17% to UK£1.17 over the past week. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improved over the past week After last week's 23% share price gain to UK£1.18, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Specialty Retail industry in the United Kingdom. Total loss to shareholders of 77% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at UK£1.94 per share. Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment deteriorated over the past week After last week's 16% share price decline to UK£1.05, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 10x in the Specialty Retail industry in the United Kingdom. Total loss to shareholders of 79% over the past three years. Price Target Changed • Nov 16
Price target decreased to UK£2.33 Down from UK£3.11, the current price target is an average from 6 analysts. New target price is 85% above last closing price of UK£1.26. Stock is down 56% over the past year. The company is forecast to post earnings per share of UK£0.17 for next year compared to UK£0.28 last year. Valuation Update With 7 Day Price Move • Nov 02
Investor sentiment deteriorated over the past week After last week's 17% share price decline to UK£1.04, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Specialty Retail industry in the United Kingdom. Total loss to shareholders of 75% over the past three years. Price Target Changed • Oct 14
Price target decreased to UK£2.86 Down from UK£3.13, the current price target is an average from 5 analysts. New target price is 135% above last closing price of UK£1.22. Stock is down 52% over the past year. The company is forecast to post earnings per share of UK£0.17 for next year compared to UK£0.28 last year. Reported Earnings • Oct 08
Full year 2022 earnings: Revenues in line with analyst expectations Full year 2022 results: Revenue: UK£609.6m (up 9.6% from FY 2021). Net income: UK£22.7m (up UK£58.8m from FY 2021). Profit margin: 3.7% (up from net loss in FY 2021). Revenue was in line with analyst estimates. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Specialty Retail industry in the United Kingdom. Price Target Changed • Apr 27
Price target decreased to UK£3.58 Down from UK£3.89, the current price target is an average from 7 analysts. New target price is 136% above last closing price of UK£1.51. Stock is down 48% over the past year. The company posted a net loss per share of UK£0.44 last year. Board Change • Apr 27
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. Co-Founder, CEO & Executive Director Julian Dunkerton is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Price Target Changed • Apr 13
Price target decreased to UK£3.58 Down from UK£3.89, the current price target is an average from 8 analysts. New target price is 101% above last closing price of UK£1.78. Stock is down 34% over the past year. The company is forecast to post earnings per share of UK£0.14 next year compared to a net loss per share of UK£0.44 last year. Buying Opportunity • Feb 14
Now 26% undervalued after recent price drop Over the last 90 days, the stock is down 37%. The fair value is estimated to be UK£2.57, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 19% per annum over the last 3 years. The company became loss making over the last 3 years. Reported Earnings • Jan 22
First half 2022 earnings: EPS exceeds analyst expectations First half 2022 results: EPS: UK£0.03 (up from UK£0.19 loss in 1H 2021). Revenue: UK£277.2m (down 1.9% from 1H 2021). Net income: UK£2.50m (up UK£17.9m from 1H 2021). Profit margin: 0.9% (up from net loss in 1H 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is forecast to grow 22%, compared to a 12% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Price Target Changed • Jan 21
Price target increased to UK£4.05 Up from UK£3.76, the current price target is an average from 6 analysts. New target price is 71% above last closing price of UK£2.38. Stock is up 7.1% over the past year. The company is forecast to post earnings per share of UK£0.067 next year compared to a net loss per share of UK£0.44 last year. Recent Insider Transactions • Oct 24
Co-Founder recently bought UK£989k worth of stock On the 20th of October, Julian Dunkerton bought around 372k shares on-market at roughly UK£2.66 per share. This was the largest purchase by an insider in the last 3 months. This was Julian's only on-market trade for the last 12 months. Reported Earnings • Sep 17
Full year 2021 earnings released: UK£0.44 loss per share (vs UK£1.75 loss in FY 2020) The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2021 results: Revenue: UK£556.1m (down 21% from FY 2020). Net loss: UK£36.1m (loss narrowed 75% from FY 2020). Over the last 3 years on average, earnings per share has fallen by 60% per year but the company’s share price has only fallen by 36% per year, which means it has not declined as severely as earnings. Price Target Changed • May 06
Price target increased to UK£2.73 Up from UK£2.49, the current price target is an average from 6 analysts. New target price is 23% below last closing price of UK£3.54. Stock is up 184% over the past year. Executive Departure • May 02
Independent Chairman of the Board Peter Williams has left the company On the 29th of April, Peter Williams' tenure as Independent Chairman of the Board ended after 2.1 years in the role. As of December 2020, Peter personally held 77.22k shares (UK£190k worth at the time). A total of 2 executives have left over the last 12 months. Recent Insider Transactions • Mar 10
Insider recently sold UK£98k worth of stock On the 4th of March, Jonathan Wragg sold around 38k shares on-market at roughly UK£2.56 per share. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought UK£2.0m more than they sold in the last 12 months. Reported Earnings • Jan 20
First half 2021 earnings released: UK£0.19 loss per share The company reported a poor first half result with increased losses and weaker revenues and control over expenses. First half 2021 results: Revenue: UK£282.7m (down 23% from 1H 2020). Net loss: UK£15.4m (loss widened 137% from 1H 2020). Over the last 3 years on average, earnings per share has fallen by 97% per year but the company’s share price has only fallen by 51% per year, which means it has not declined as severely as earnings. Price Target Changed • Jan 19
Price target raised to UK£2.51 Up from UK£2.31, the current price target is an average from 9 analysts. The new target price is 25% above the current share price of UK£2.01. As of last close, the stock is down 51% over the past year. Major Estimate Revision • Nov 27
Analysts update estimates The company's losses in 2021 are expected to worsen with analysts lowering their consensus EPS forecasts from -UK£0.31 to -UK£0.43. Revenue estimate was approximately flat at UK£594.3m. The Specialty Retail industry in the United Kingdom is expected to see an average net income growth of 47% next year. The consensus price target increased from UK£2.11 to UK£2.31. Share price is up 13% to UK£2.67 over the past week. Price Target Changed • Nov 26
Price target raised to UK£2.31 Up from UK£2.03, the current price target is an average from 8 analysts. The new target price is 13% below the current share price of UK£2.67. As of last close, the stock is down 46% over the past year. Is New 90 Day High Low • Nov 13
New 90-day high: UK£2.28 The company is up 54% from its price of UK£1.48 on 14 August 2020. The British market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£0.65 per share. Recent Insider Transactions • Oct 27
Co-Founder recently bought UK£45k worth of stock On the 19th of October, Julian Dunkerton bought around 29k shares on-market at roughly UK£1.54 per share. In the last 3 months, they made an even bigger purchase worth UK£1.1m. Julian has been a buyer over the last 12 months, purchasing a net total of UK£1.8m worth in shares. Is New 90 Day High Low • Oct 26
New 90-day high: UK£1.81 The company is up 54% from its price of UK£1.18 on 28 July 2020. The British market is down 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 31% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£0.68 per share. Recent Insider Transactions • Oct 21
Co-Founder recently bought UK£138k worth of stock On the 16th of October, Julian Dunkerton bought around 92k shares on-market at roughly UK£1.50 per share. In the last 3 months, they made an even bigger purchase worth UK£1.1m. Julian has been a buyer over the last 12 months, purchasing a net total of UK£1.7m worth in shares. Is New 90 Day High Low • Oct 05
New 90-day high: UK£1.70 The company is up 19% from its price of UK£1.43 on 07 July 2020. The British market is down 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is UK£0.71 per share.