Superdry boss optimistic despite declining revenue

Fashion chain Superdry is “recovering well” from the disruption of the pandemic, its chief executive has said.
According to Superdry, its improved trading performance was supported by its growing investment into social marketing.
// Superdry says it has seen an improvement in trading across its retail channels in the eight weeks to October 23
// The retailer’s first-half performance was negatively impacted by temporary closures of shops in Europe amid Covid

Superdry has seen its group revenue decline by 2.4 per cent year-on-year in the first half of its financial year.

In the 26 weeks to October 23, store revenues rose by 21.7 per cent while online sales declined by 30 per cent.

In its latest trading statement, the Gloucestershire-headquartered retailer said Covid was continuing to impact its stores, but added that it had seen an improvement in trading across its retail channels in the eight weeks to October 23.

Superdry founder and chief executive Julian Dunkerton said: “Superdry is recovering well from the disruption of the Covid-19 pandemic and I am really pleased with the start to the autumn/winter 2021 season, despite the ongoing disruption around the world.

“Once the new range landed and we began trading against a comparable full price period, we saw an acceleration into positive two-year retail like-for-like growth.”

According to Superdry, its improved trading performance was supported by its growing investment into social marketing.

However, its first-half performance was negatively impacted by temporary closures of shops in Europe, as well as the permanent closure of 15 stores, including Regent Street in London back in July.

The retailer said footfall remained subdued in all markets and was still down 27 per cent in the UK despite the easing of Covid-related restrictions.

However, Superdry reported that store revenue had begun to recover and was up 21.7 per cent.

Looking ahead, Dunkerton said: “Our focus on full-price sales continues to deliver improvements in gross margin and I am pleased that we are ending the half with 10 per cent fewer inventory units than last year.

“We are encouraged by the performance this strategy is starting to deliver, which gives me further confidence in the full year outlook.”

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