The fashion chain's Christmas sales fell sharply amid "unprecedented" discounting by rivals.Read more
AJ Bell's Russ Mould has also been looking at Superdry's disappointing trading update, which warned profits could be cut to zero.
He says the return of co-founder Julian Dunkerton to the company "is starting to look like a difficult second album rather than an overnight success".
“Reducing discounts may have hurt sales amid strong industry competition but this could be a price worth paying if it helps rebuild the integrity of the brand and improves margins.
“This is a high-wire act for Dunkerton though, as it relies on the patience of shareholders and there is a risk the brand just doesn’t have the same cachet it once did.
“After nine months in charge, and after a lengthy campaign to oust the previous management, there will be increasing pressure on him from the market to deliver tangible signs of progress as we move through 2020.”
Superdry's share price dropped 20.28% to 376.1p after it warned that it expects full year pre-tax profit to fall to between £nil and £10m.
The wider FTSE 250 has opened up 0.19% at 21,683.69 while the FTSE 100 is up 0.13% at 7,607.79.
Superdry said sales for the 10 weeks to 4 January dropped by 15.8% with revenue down across all parts of the business: in store, online and wholesale.
The fashion retailer's co-founder, Julian Dunkerton, who returned as the company's chief executive last year, said while Superdry is making progress on a turnaround program "we have always said it will take time".
He said: "A key element of this is to focus on and return to full price sales and reduce promotional activity, and we halved the proportion of discounted sales over our peak trading period, benefitting both our margins and the Superdry brand.
"However, this adversely affected our sales during the peak trading period given the level of promotional activity in the market. Despite this, our disciplined plan to reinvigorate the brand and return Superdry to sustainable long-term growth is on track."
Retail analyst Richard Lim from Retail Economics is unimpressed by the latest update from Superdry.
"A terrible Christmas trading period as the retailer continued to re-position the brand following the boardroom fall-out last year," he says.
"Double-digit declines across the group and a woeful online performance demonstrate just how far the retailer has fallen behind its competitors."It appears that Superdry is another victim of positive Black Friday sales coming at the expense of Christmas trading. Rational consumers pulled forward their Christmas shopping at discounted prices leaving the traditional peak sales period void for retailers. "Disappointing post-Christmas clearance sales also showed that discounting fatigue set in by the time retailers are ready to clear wanted stock."
Fashion chain Superdry has said its full-year profits could be zero after reporting weaker than expected trading over the crucial Christmas period.
"Despite a strong Black Friday event, peak trading performance has been lower than expected as we continue our strategic transition to a full price stance," the retailer said.
"Over this period the high street has seen unprecedented levels of promotional activity coupled with subdued consumer demand immediately after Christmas.
"These factors, combined with shortages of some better-selling product, driven by the need to reduce our inherited inventory position, adversely impacted our sales during peak trading."
The firm added: "Taking into account our revised sales expectations for the balance of the financial year, and the challenging trading environment in which we are operating, we now expect underlying PBT [profit before tax] to be in the range of £nil - £10m."
Superdry's latest results - which showed their half-year profits wiped out - "demonstrate the size of the task at hand" for returning boss Julian Dunkerton, according to analyst Richard Lim of Retail Economics.
He also questions whether Mr Dunkerton's strategy of returning the business to its original roots is the right one, "given the sheer pace of change in the industry".
"Returning to a brand that once had a point of differentiation, a reason to visit stores and a point of view will be no easy feat," Mr Lim says.
"The online proposition falls well short of many of its competitors who have have put digital strategies at the heart of the customer journey. The long road of recovery is likely to have many twists and turns ahead."
Euan Sutherland will begin the job in the new year. Lance Batchelor, who has held the post since 2014, will retire from the firm, which sells including insurance, holidays, money and magazines.
Most recently the chief executive of the fashion retailer Superdry, Mr Sutherland has previously held the top job at Co-op Group, as well as the home improvement retailer, Kingfisher.
Mr Sutherland resigned from Superdry in April 2019 after founder Julian Dunkerton won his bid to be reinstated to the board of the company he founded.