Focus on wholesale and online fits Superdry well
By Andrew Merrell | 5th July 2018
Fashion clothing brand Superdry has produced a good-looking set of results siting a focus on wholesale and digital channels as its route to a "strong year".
As other retailers have talked about the need to go digital and been burned for not acting sooner the Cheltenham headquartered world-wide brand has made on-line part of its DNA.
Global Brand revenue was up 22.1 per cent to £1.60bn (2017: £1.31bn), with growth in all key territories, group revenue up 16 per cent to £872.0m (2017: £752.0m) led by the aforementioned "capital light channels" and wholesale revenue up 29.6 per cent.
The latter included eight new markets reached in the year, a year which also saw founder Julian Dunkerton officially leave the company and the SuperGroup name dropped.
The change in consumer spending habits can be seen in the following numbers: Retail revenue rose 9.2 per cent, driven by ecommerce revenue up 25.8 per cent, and with store revenue up 3.4 per cent.
However, when you put the figures through the wash statutory profit before tax - the company's bottom line - was actually down 23 per cent to £65.3m (2017: £84.8m).
According to the business the loss reflects "the fair value movement on forward exchange contracts and impairment of the Berlin Kranzler store".
Euan Sutherland, chief executive officer (pictured), said: "Superdry has had another strong year, enhancing our position as a Global Digital Brand with a multi-channel approach.
"We have made good progress in delivering our strategy and significantly strengthened our platform and capabilities, while delivering another year of double digit growth in sales and profitability.
"Our focus remains on executing our growth strategy and realising the potential we have identified across products, geographies and channels."
The company had, he said, eight routes to market which allowed it to continue to "tailor by territory and channel, while our innovative approach to digital marketing means we can enhance our relevance to consumers around the world".
"Whilst the consumer environment continues to be challenging, the board remain confident that Superdry is a uniquely advantaged, highly cash-generative business that will continue to deliver sustainable growth for our investors."
And it put its money where its mouth is and announced its second special dividend in two years of 25p per share in addition to the 11.4 per cent increase in the total ordinary dividend.
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