Fashion retail giant Superdry has revealed that its sales in the Christmas holidays have fallen sharply and the company has issued a warning notice to its employees internally.
The firm had been trying to sell clothes at the full prices and had given little or no discounts. It said that the company was taken aback by the high levels of promotional activities done by the rival companies.
Julian Dunkerton who is the present CEO of the company and is the co-founder returned to the helm of the company last year. He also blamed the poor sales to the old designs of clothes and said that the previous management did not come out with new clothing ideas.
The retailer reported a loss of 15.8% in its revenue figures over the last 10 weeks ending on 4th January this year.
This resulted in the company backtracking its previous annual profits figures from 40 million GBP to 10 million GBP. On the stock market to the company’s share prices saw a slump of 20% as the loss figures reached the public.
The recent slump in profit figures for the fashion retailing company also drew a lot of comments by the people on social media.
The last 12 months has seen many ups and downs for the company. Last Year in April, Mr Dunkerton returned to lead the company after he led a campaign against the top management saying that they were misguiding the company.
After he returned back to his co-founded company he instantly pressed that the company should focus on selling the products at the full prices and avoid discounts and promotions. But this meant that the sales figures for the company took a hit as customers preferred buying the products from the rival stores due to better discounts.
Mr Dunkerton believed that by not giving discounts the company will gain on the margins that will boost its profit figures.