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Clothing & Shoes

Superdry revenue slumps 21% in full-year results

While store revenue was down by 50.9% to £140.9 amid ongoing store closures in the period, this was partially offset by an e-commerce growth of 33.8%

Superdry saw revenue fall 21% to £556.6m in the full-year ended 24 April 2021, despite witnessing a slight growth of 0.8% in its final quarter as restrictions began to ease across the UK. 

While store revenue was down by 50.9% to £140.9 amid ongoing store closures in the period, this was partially offset by an e-commerce growth of 33.8%, with online revenue totalling £202.9m, up from the £151.6m reported the prior year.  

Its e-commerce performance in the final quarter was particularly strong, with revenue up 26.6% year-on-year, amplified by an increase in online trading gross margin of 7.5% as the group began the return to full price trading.

The group also saw a reduction of 14% in total stock units year-on-year despite the effects of the pandemic, delivered through targeted clearance activity and a reduced buy.

Nonetheless, the group was “substantially impacted” by continued Covid-19 disruption throughout the year, and stores suffered an average of 69% lost trading days in Q4, resulting in a 51.5% decline in revenue against Q420. As at 3 May 2021, the group still has 27% of its store estate closed.

Looking ahead, the group said there is “significant uncertainty” given the varying impacts of the pandemic in its markets, particularly to the trajectory and phasing of the consumer recovery. However, it is “confident of growth” in FY22 revenue and profitability compared to FY21 assuming there are no further material national lockdowns. 

Julian Dunkerton, CEO, said: “Our strengthened Ecommerce presence has helped mitigate the impact from enforced closures of our stores. We returned to revenue growth in Q4, and our commitment to a full price stance over the period has seen significant online margin improvement. Our liquidity remains strong, with closing net cash ahead of last year and our facilities remain undrawn.

“Despite all the disruption of the past year, Superdry has demonstrated its resilience and we have used this time to ensure the business is in the best possible shape for the future, really focusing on developing our digital presence and making strides towards our goal of being the most sustainable listed fashion brand.”

He added: “The early signs following the reopening of our UK stores are encouraging, as lockdown restrictions start to lift, and we can clearly see the light at the end of the tunnel. In short, we are on track with our reset of the brand and there’s a lot to look forward to.”

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