SuperGroup adopts Superdry brand and annouces CSR goals
SuperGroup Plc, parent of Superdry, has announced a name-change to Superdry Plc and has updated the market on its strategy including global digital expansion and three "stretching" corporate social responsibility goals.
Chief executive of Superdry Plc Euan Sutherland said rationalising the brand was "an important step reflecting our focus on developing the iconic Superdry brand globally and digitally."
"Superdry is a global digital brand with huge opportunities ahead of it. Over the past three years our business has delivered a fundamental transformation becoming increasingly diversified not only internationally, but also by channel, product and in the customers we attract," he said.
"Looking forward we believe we are better placed than ever before to deliver on our global digital brand aspirations. Our unique capability across Ecommerce, Wholesale and store channels provide significant opportunity for growth in the world's largest apparel markets with our focus on operational excellence enhancing returns from this growth," Sutherland said.
At a two-day Capital Markets Update event at its Cheltenham headquarters the group said that while Superdry already served consumers digitally in 148 countries through 20 websites (generating over 25% of Retail revenues having grown by an average of 50% each year since 2015), "many of the world's largest markets are still untapped opportunities".
It revealed that it intended to capitalise on these untapped opportunities primarily through ecommerce and wholesale which provide low capital routes to market. "These channels complement an owned store network that delivers attractive returns on capital while providing a complete brand experience. Furthermore, the improvements and efficiencies identified from our Next Generation store re-fit programme is allowing us to improve the payback on future owned stores to 20 to 24 months," it said.
In addition the business outlined three key CSR goals to be delivered by 2040. The "Super Responsible 40" goals are: 100% organic cotton usage; 100% renewable electricity usage; and helping 100,000 young people to positively contribute to their community.
"Our three stretching Super Responsible 40 targets reflect the scale of our ambition for the Superdry brand and our aspiration to be a leader in corporate responsibility. We are more excited today than we have ever been before about the future of Superdry and our ability to create long-term sustainable growth for our investors by delivering on our compelling strategy," Sutherland said.
SuperGroup was formed in 1985 by Julian Dunkerton as the parent of the Cult Clothing brand, which opened its first store in Cheltenham. In 2003 Dunkerton teamed up with designer James Holder, who had previously founded the Bench brand, to develop and create a new in-house brand called Superdry. The Cult Clothing brand was eventually phased out and the group focused on Superdry.
The business floated in 2010 and in 2011 it opened its flagship store on London's Regent Street, which is also home to its showroom. In the year to 29 April 2017 the business achieved revenues of £752m, up nearly 26% year on year. Earlier this month Dunkerton and Holder announced a staff bonus which will see the pair distribute among staff a fifth of any share price gain Superdry Plc makes above £18 by September 2020. The bonus will be funded by Dunkerton and Holder who own respectively 27% and 10.55% of the group's shares.