Profits slide at Superdry
By Matt Hall | 21st September 2020
Cheltenham-based fashion retailers Superdry Plc has announced a fall in profits of 210 per cent due to the impact of the coronavirus pandemic.
The business has reported an underlying loss before tax of £41.8million in the year to April 25, down from a £38million profit last year.
Group revenue also fell 19.2 per cent year on year to £704.4million during the period, which is said to have reflected the move away from persistent discounting as well as coronavirus store closures.
In an effort to preserve cash through the pandemic, the business closed three of its four US distribution centres and reduced overheads and discretionary spend.
The measures paid off with Superdry ending the period with a net cash position of £36.7million, an increase of 2.2 per cent from 2019's figure of £35.9million.
Founder and chief executive Julian Dunkerton said: "Our priority throughout the pandemic has been the wellbeing of our colleagues and customers.
"As with all retailers, we have experienced significant disruption to our operations, and this has inevitably had an impact on our FY20 results, but I'm proud of how everyone in the business has stepped up during this exceptional time.
"While our underlying profit has been impacted by trading performance during the year, including Covid-19 related store closures, I am particularly pleased by how strongly ecommerce has performed, with FY21 first quarter revenues nearly doubling year-on-year."
He continued: "This has been complemented by our increased digital consumer engagement, which helped drive a stronger womenswear mix than we have ever seen before.
"I'm pleased that we have delivered a good increase in the full price mix, which is up 12 points year-on-year and has had a positive impact on gross margin.
"We are delivering on the reset of the business, despite the impacts of the pandemic. This has included re-invigorating the store design and layout, preparing for a relaunch of our website, and significantly increasing the number of options available both in store and online."
Financial results reveal that the group is also cautious about the future, adding: "Despite a stronger than anticipated performance in Q1, historically our lowest trading period, we remain cautious on the shape of the economic recovery, and the impact this may have on our ability to turnaround performance in line with our plan.
"Consequently, we recognise there is a material uncertainty, and are not providing formal guidance."
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