Superdry’s sales soar but wholesale cuts margins

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Superdry

Superdry’s parent company SuperGroup has posted strong growth across the board in its half year trading update.

In the 26 weeks to October 28 the fashion retailer’s revenues jumped just over 20 per cent to £402 million, while global brand revenues rose 25.2 per cent to £756.3 per cent.

Retail revenues performed well, rising 12.8 per cent to £242.7 million, but this was outperformed by a huge rise in wholesale revenues which rocketed 34.1 per cent to £159.3 million.

Ecommerce sales also shot up 31.6 per cent to £61.2 million, outpacing store revenue growth of 7.6 per cent to £181.5 million, with store space also growing 15.4 per cent to over 1 million sq ft.

Profits were not disclosed for the period, but the group says gross margins are expected to decline year-on-year by approximately 170bps due to growing wholesale sales.

“We have delivered another strong performance in this half, further demonstrating the unique advantages and attractiveness of Superdry as a Global Digital Brand,” chief executive Euan Sutherland said.

“Our growth has further diversified the brand, both geographically and across channels, which serves to insulate the business from trading conditions in any single market.

“The performance in this half underlines our confidence in both the strength of the brand we are building and the quality of sustainable financial performance we can deliver.”

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