// Superdry revenue drops as the company’s previous strategy lets it down
// In the 26 weeks to October 31, group revenue fell by 11.3% to £367.8m
Superdry has reported a decline in revenues as heavy discounting affected its overall performance.
In the 26 weeks to October 31, group revenue fell by 11.3 per cent to £367.8 million.
Full-price sales were around 70 per cent of Superdry’s sales mix in the first half of the year, compared to 51 per cent in the first half of 2018.
Store revenue fell by 11.7 per cent to £157 million in the period and ecommerce revenue by 10.5 per cent to £57.9 million.
Meanwhile, wholesale revenue also dropped by 11.2 per cent to £152.6 million.
The fashion retailer blamed its previous strategy of heavy discounting and lower quality product on the decline.
With a brand new executive team – including the return of co-founder Julian Dunkerton as chief executive – Superdry said it was now focusing on “delivering better experience and more product choice” and its spring 20 stock looked ”more promising”.
“We are making good progress with the start to our turnaround plan for Superdry, returning the business to its design led roots,” Dunkerton said.
“We have always said it will take time, but we have a strong team which is working incredibly hard to deliver this plan.
“I’m genuinely excited by the new injection product which has started to land in stores for this peak and even more excited about the new ranges signed off for next year.
“We are moving the business away from a reliance on constant promotions, and while this focus on full price sales has affected revenue in the first half, this is being partially offset by a better gross margin performance.
“There is good momentum in the business, and I remain confident of returning Superdry to sustainable long-term growth.”
Last month, Dunkerton was confirmed as chief executive until April 2021.
He was reinstated to the Superdry board amid a public battle late last year and early this year.