Here’s Why the Superdry Share Price Soared 98% on Friday

The Superdry PLC (LON: SDRY) share price soared 98.11% on Friday after issuing a statement saying that the fashion retailer’s CEO, Julian Dunkerton, was considering making an all-cash offer to acquire shares of the company that he already does not own. 

The consideration comes from several strategies evaluated by Dunkerton, Superdry announced on Friday. The retailer's shares experienced a surge to their highest point since October earlier in the day following a report by The Times that U.S. private equity firm Sycamore Partners and Authentic Brands Group, owner of Ted Baker, had shown interest in Superdry. 

Additionally, the stock received a boost from the news that Norwegian alternative investment fund First Seagull has acquired a 5.3% interest in Superdry.

In its announcement, Superdry did not address rumours of a potential acquisition by external parties but mentioned Dunkerton's contemplation of a cash offer for the company, potentially in partnership with financing sources. As per Superdry's statement, the discussions regarding this offer are in the initial phases, and no definitive decisions have been made.

Dunkerton, who possesses a 26% ownership in Superdry, is considering these measures amidst a backdrop of declining share prices due to low consumer demand and financial difficulties faced by the retailer. Superdry's shares jumped as much as 127% to 48 pence on Friday, although they are significantly lower than their 2018 peak of over 2,000p.

Superdry, an FTSE small-cap index member, recently expressed pessimism about the immediate improvement in market conditions following a challenging holiday season. The company also announced the upcoming departure of its CFO, Shaun Wills, at the end of March.

As Superdry navigates through financial challenges, it has been exploring various cost-saving measures, including potential store closures and layoffs, as reported by Sky News.

Analysts, including Matthew McEachran from Singer Capital Markets, are not surprised by the possibility of Dunkerton making an offer, considering his significant stake and critical role in the company's recovery strategy. 

McEachran emphasises the urgency of implementing cost restructuring to aid in the company's recovery, noting that such efforts would require funding.

Superdry share price. 

Superdry share price rallied 98.11% on Friday from Thursday’s closing price of 21.5p to close at 44.5p.