Superdry boss remains optimistic, despite loss
By David Wood | 27th January 2023
Superdry has suffered a first-half £13.6m loss after a decline in wholesale and increases in rents to pre-Covid levels.
The Cheltenham-based fashion retailer recorded an interim adjusted pre-tax loss of £13.6m in the period from May 1, 2022, to October 29, 2022, up from a loss of £2.8m in the comparable period of the previous year.
Superdry has cut full-year expectations for adjusted profit before tax to breakeven (previously £10m to £20m).
However, group revenue rose 3.6% to £282.2m and over the nine-week Christmas period to December 31, group sales rose 4.5%.
Retail revenue rose 24.9% over Christmas, which Superdry said reflected a strong recovery in stores, as customers returned to high streets, with strong demand for womenswear, denim, and jackets..
But wholesale revenues fell 5.2% in the first half due to a lagged recovery after Covid and shipment timing. In the year to date, wholesale revenues are down 18%.
Julian Dunkerton, founder and chief executive officer, said: "The Superdry brand has real momentum and I'm delighted by how our retail trading continues to strengthen. We've done this against a difficult macroeconomic backdrop by delivering well-designed, affordable, and responsibly sourced products which have resonated well with customers.
"Our coats performed really well in the run-up to Christmas, and womenswear continues to be a highlight for us. Stores continued to recover strongly and online had its biggest ever week over Black Friday, helped by our new ecommerce platform which is delivering real benefits.
"We continued to receive positive recognition for our efforts to make Superdry the '#1 Sustainable Style Destination', and this year CDP awarded us an A rating, one of only two British fashion brands on this year's 'A List'.
"Despite the underlying brand recovery, our profits in the first half fell short of expectations mainly due to the underperformance of wholesale. We reorganised our team and our approach to support our wholesale partners and expect to see their confidence return following the retail success of AW22.
"Whilst we did trade well through November and December, the outlook for the remainder of the year is uncertain and as a result, we are moderating our profit outlook to broadly breakeven. We don't expect market conditions to become easier any time soon, but with a new financing package in place and the brand in great health, we approach the year ahead with optimism."
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