Superdry full-year revenues slump despite improved fourth quarter

In a trading update for the 52 weeks to April 24, 2021, the fashion retailer reported a 21% slump in group sales to £556.6m, which it blamed on its store estate being closed for much of the period. 

However, Superdry said group sales had inched up 0.8% in the fourth quarter of the year boosted by its ecommerce proposition. 

The retailer said it was “confident of growth in FY22 revenue and profitability compared to FY21” provided that there were no further lockdowns and footfall recovered to near pre-pandemic levels.  

By channel, Superdry stores across the financial year lost around 40% of trading days and revenues plummeted 50.9% as a result to £140.9m. 

Superdry’s wholesale revenues also fell 19.9% to £212.8m, although the retailer was more positive about the strength of its burgeoning ecommerce business. 

Online sales for the year were up 33.8% overall to £202.9m and Dunkerton said the retailer can now see “light at the end of the tunnel” following the crisis. 

“Our strengthened ecommerce presence has helped mitigate the impact from enforced closures of our stores,” he said.

“We returned to revenue growth in Q4 and our commitment to a full-price stance over the period has seen significant online margin improvement. Our liquidity remains strong, with closing net cash ahead of last year, and our facilities remain undrawn.

“Despite all the disruption of the past year, Superdry has demonstrated its resilience and we have used this time to ensure the business is in the best possible shape for the future, really focusing on developing our digital presence and making strides towards our goal of being the most sustainable listed fashion brand.

“I’m proud that we’ve been able to accelerate our commitment to ensure all pure cotton items are organic by five years to 2025, working closely with growers in India, and that our focus in this area was recognised by Drapers at its Sustainable Fashion Awards in February.

“We have also further strengthened our leadership team, with new chief financial officer Shaun Wills and chief operating officer Silvana Bonello in place and already having a positive impact.

“Last week, we were joined by Peter Sjӧlander who started in his role as chair. I am confident we have the right team in place to drive the business forward.

“The early signs following the reopening of our UK stores are encouraging as lockdown restrictions start to lift and we can clearly see the light at the end of the tunnel. In short, we are on track with our reset of the brand and there’s a lot to look forward to.”