Superdry H1 losses narrow despite dip in revenues
The group also gave an update for the 11-week period ending 8 January, where revenue was up 19.6% versus FY21 as physical trading continued to recover
Superdry said it has been hit by the continued impact of Covid-19 as well as its move to a full-price trading stance, as revenue fell by 1.9% on a one-year basis and 24.9% on a two-year basis in the half-year ended 23 October 2021.
Nonetheless, the fashion retailer ensured that gross margin gains “more than offset” a decline in sales, driven by an increase of 12% in the full price mix, with growth across both its stores and e-commerce, up 5.1% and 7.7% year-on-year, respectively.
In addition, its adjusted loss before tax improved to a loss of £2.8m, up from a loss of £10.6m the prior year, reportedly benefitting from the reopening of its stores.
The group also gave an update for the 11-week period ending 8 January, where revenue was up 19.6% versus FY21 as physical trading continued to recover. On a two-year basis, revenue witnessed a “significant step-up” in run-rate since the first half of FY22, improving from a decline of 24.9% to a decline of 11.7%.
This came despite footfall remaining suppressed against pre-Covid levels, more restrictions amid the spread of Omicron, and a “significant” reduction in its mark-down offer in Black Friday and post-Christmas sales.
Looking ahead, it said the emergence of Omicron has resulted in “more uncertainty”, but it “remains encouraged the brand is clearly resonating with consumers”, adding that its performance over the peak trading period has given it “confidence that we will achieve current market expectations for FY22 adjusted PBT”.
Julian Dunkerton, CEO, said: “I’m really pleased with our progress against each of our strategic initiatives with clear signs of brand and financial recovery. The health of the brand is best demonstrated by the improving sales run-rate and a 12% increase in Retail full-price sales mix which helped drive group gross margin up 3.5% year-on-year.
“Illustrating our long-term commitment to the high street, our new Oxford Street flagship store launched in November, showing the best representation of our style choices and how we plan to engage with our customers, wholesale partners and the influencer community. It has been pleasing to see early trading performance, which has exceeded expectations.”
He added: “We continue to make progress on our digital marketing strategy and reigniting consumer interest in the brand, with the number of influencers we have engaged increasing sixfold year-on-year to more than 2,000 at the end of December, supported by our increasing investment in social marketing activities and ever-improving product.
“While there remains uncertainty about the impact of Covid-19 and the macro-economic environment, I am increasingly confident in the accelerating momentum of our reset and the strengthening of the brand.”
