Superdry sees its losses narrow to £36m

Superdry CEO Julian Dunkerton has hailed that the company is “turning the corner” after it revealed statutory losses before tax for FY21 have narrowed to £36.7m, down from £166.9m the previous year.

In its preliminary results for the 52-week period ending 24 April 2021, the retailer posted a full year adjusted loss before tax of £12.6m, down from £41.8m the previous year, with cost saving measures and government support helping to offset trading shortfall.

The retailer revealed that the progress was made despite seeing revenues fall 21.1% to £556.1m which it attributed to the “significant impact” from Covid-19 related disruption resulting in 39% of store days lost.

However, the retailer revealed that it has started to see signs of recovery during the last 18 weeks of trading following the end of April, with group revenues having increased 1.9% year-on-year as Covid-related restrictions eased.

Superdry also said that wholesale revenues have started to recover, increasing 12.7% year on year as its partners “gain more confidence in the macroeconomic outlook”.

Looking ahead, it said it expects to generate operating leverage from reduced store rents and payroll compared to pre-Covid levels, although it anticipate a £35-45m year-on-year increase in costs due to one-off benefits recognised in FY21, such as the return of UK business rates, the end of furlough support, and the normalisation of other variable and discretionary costs.

Commenting, Dunkerton said: “Like most brands with a physical presence, our performance over the past year has been impacted by the significant disruption of Covid-19, but I am really proud of how the business has stepped up and returned to revenue growth in Q4.
We have used this time effectively to accelerate our brand reset and put the business in the best possible position for the future.

“We have strengthened the team with the appointments of Shaun Wills as CFO, Silvana Bonello as COO and Peter Sjӧlander as chairman, and we’re sharpening our strategic focus on the key areas of our brand and product, our engagement with our customers, our operations and on sustainability.”

He added: “I’m in no doubt that we’re turning the corner and there’s a lot to be excited about. Trading has been encouraging since the reopening of our stores, and we’ll take a big step forward as a brand with the opening of our global flagship store in Oxford Street later in the Autumn.

“Whilst a lot remains uncertain, I’m looking ahead to 2022 and beyond with real confidence as we deliver our reset.”