Superdry "turning the corner" as losses shrink despite store closures
Superdry has announced it is “turning the corner” as it posted shrinking losses for the past year, despite the closure of stores due to the coronavirus pandemic.
The premium fashion brand told investors that sales were “recovering well” even though high street footfall was subdued and that it was continuing with its transformation plan amid a challenging retail environment.
The company reported a pre-tax loss of £36.7 million for the year to 24 April, compared with a £166.9 million loss a year earlier.
Superdry saw revenues slip by 21.1% to £556.1 million for the year as it was disrupted by further lockdowns across key regions.
It said almost 40% of potential store trading days were lost due to pandemic closures over the period.
Meanwhile, the retailer said sales for the latest 18 weeks from the end of April were 1.9% ahead of sales from last year. However, it added that this was 29.6% below pre-pandemic levels from 2019.
The group said a strong rebound in store sales in the UK and US was partially offset by business in the EU, which saw further closures at the start of the period.
It said e-commerce sales were also “modest” compared with the rapid growth it had seen in the previous year after the pandemic helped accelerate online traffic.
CEO Julian Dunkerton said trading has been “encouraging” since shops reopened, adding that the opening of Superdry’s new Oxford Street flagship store this autumn will be a big step forward.
“Like most brands with a physical presence, our performance over the past year has been impacted by the significant disruption of Covid-19, but I am really proud of how the business has stepped up and returned to revenue growth in Q4,” he said.
“Store and wholesale revenues are recovering well despite continued subdued footfall, and e-commerce margin is benefiting from our return to a full-price stance.
“I’m in no doubt that we’re turning the corner and there’s a lot to be excited about.
“Whilst a lot remains uncertain, I’m looking ahead to 2022 and beyond with real confidence as we deliver our reset.”