Superdry has reported slumps in group sales and across all its channels, which it says “reflects an expected year of reset” and legacy issues across the business.

In a pre-close trading statement the menswear retailer reported an 11.3% fall in group revenue to £376.8m for the 26 weeks to October 26, 2019.

Sales were down across its various channels, with store revenues falling 11.7% to £157.3m, ecommerce down 10.5% to £57.9m and wholesale down 11.2% to £152.6m.

Superdry blamed the declines on “the need to address a number of legacy issues across the business”.

It flagged that the retail sales decline did moderate through the first half of the year, with second-quarter sales down 9.4% compared with 13.9% in the first quarter.

The retailer said while full-price sales and reducing promotional activity impacted performance, it did drive a 3.2% increase in store gross margins.

Superdry said that, in its owned stores, it is “working through legacy stock while trading against a period of significant promotional activity”, and that the ecommerce sales decline was slowing due to its growth plan.

The menswear retailer also blamed declining wholesale revenues on the business’ “previous retail strategy of heavy discounting and lower-quality product”.

Chief executive Julian Dunkerton said: “We are making good progress with the start to our turnaround plan for Superdry, returning the business to its design-led roots. 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 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.”

Dunkerton returned to the brand he founded in April following a protracted board battle. He had previously been highly critical of its performance, as one of its largest shareholders, and of its management team in particular.

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