Superdry Christmas quarter revenue dented by decline in online & in-store sales

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Superdry Julian Dunkerton
// Superdry reports a 1.5% decline in overall group revenue in Christmas quarter
// Overall revenue was knocked by 8.5% decline in in-store sales and 0.7% decline online
// Full-year profit before tax forecasts now £58.4m, down from £97m in 2017-18

Superdry has recorded a decline in revenue for its crucial Christmas quarter, which was driven by drops in online and in-store sales as well as product issues and unseasonably warm weather.

For the fashion retailer’s third quarter period ending January 26, overall group revenue declined by 1.5 per cent to £269.3 million.

In-store sales went down by 8.5 per cent to £126.8 million and online sales dropped by 0.7 per cent to £69 million.

However, Superdry’s wholesale sales grew 12.7 per cent to £73.5 million, which helped boost its overarching global brand revenue by 5.4 per cent to £479.6 million.

Despite the mixed results and although it slashed its full-year profit guidance in December, the retailer said it had traded in line with market expectations throughout the third quarter.

It said that prior to its update the consensus of analysts’ underlying profit before tax forecasts for the 2018-19 year was £58.4 million, down from £97 million in 2017-18.

“Superdry’s performance has remained subdued during quarter three,” Superdry chief executive Euan Sutherland said.

“We continued to be impacted by the ongoing product mix and relevance issues we have previously highlighted, and by the lack, until the end of quarter three and the start of quarter four, of any prolonged period of cold weather in our key markets.

“We are pleased with the early progress being made with our transformation programme, designed to reset the business and deliver a return to higher levels of growth and profitability.”

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