Somethings just never feel right. I rarely agree with Bryce Elder of FTAlphaville, but he has been a long-time critic of the Superdry brand. At the end of the day, they are just t-shirts and other very overpriced casual wear. yet the company has been in overdrive and its life as a listed company has been a gilded one.
This morning's news though is a classic in corporate governance. It turns out that SuperGroup (the owner)has been over-estimating its profits and growth by about 20%. No news yet of the Finance Director falling on his sword, but surely that will come in the next week or two. Six figure salaries and valuable share options should require a modicum of competence.
Sadly for SuperDry it has been a bad few months anyway as its stockmarket darling status has drained away. Retails brands like this are always a difficult one, you can see it with the history of the likes of FCUK - they all seem to experience and Icarus moment. After this though, they trade sideways but quite nicely for years until snapped up by a larger player?
From a trading perspective too at 41% down and at 333p as opposed to 1400 it is a pretty strong base. As far as i can see it is priced at 3x next years earnings, compared to 9x for FCUk as an example - so I am tempted with a very small trade looking for a short term 20% upside.