// Superdry profits drop as it cuts full-year expectations to breakeven
// Group revenue rose 3.6% to £282.2m in the first half to October 29, 2022
Superdry has seen its first-half profits drop after a decline in wholesale and a return to normal rents and rates post-Covid.
The fashion retailer has cut full-year expectations to breakeven.
Superdry recorded an interim adjusted pre-tax loss of £13.6m in the first half to October 29, 2022, up from a loss of £2.8m in the comparable period of the previous year.
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Group revenue rose 3.6% to £282.2m. 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 ”both a strong recovery in stores, with more seasonal weather reigniting strong demand for our outerwear”.
However 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%.
Superdry said it was ”very cautious about the potential for a soft spring”.
It has cut guidance on full-year adjusted pre-tax profits to breakeven from between £10m and £20m previously.
Superdry CEO Julian Dunkerton 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.
”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.”
