Superdry losses narrow as it makes sustainability gains

The fashion retailer reported an adjusted loss before tax of £12.6m for the 52-week period to April 24 as it felt the impacts of the coronavirus pandemic.

It said that this loss was partially offset by the aid of the government furlough scheme and other support measures.

Superdry’s sales were down 21.1% to £556.1m, which it attributed to the enforced closure of its store estate during lockdown periods, losing 39% of trading days in store.

The retailer has been focusing on key strategic areas, including its sustainability plans: 33% of its product is now sustainably sourced, with a focus on cotton, linen and hemp.

Superdry has also sought to revamp its store organisation, identifying consumer segments into five key collections rather than separating product by gender.

It has also secured a new flagship store on Oxford Street, which is due to open this autumn.

Chief executive Julian Dunkerton told Retail Week: ”We absolutely need a global flagship. Oxford Street is the obvious point. We’ve looked at the footfall compared to our Regent Street store and it’s hundreds of percent different and we’ve got Crossrail opening next door.”

”Is London going to recover? Are tourists going to come back? Well, of course they will. This is a moment in time to grab a great site.”

The new store, which will be spread across two floors, will also have an influencer hub. It will sell a variety of vintage, recycled and renewed products, and will display messaging around the company’s sustainable principles.

Dunkerton said: “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. 

“We have used this time effectively to accelerate our brand reset and put the business in the best possible position for the future.

“We have strengthened the team with the appointments of Shaun Wills as chief financial officer, Silvana Bonello as chief operating officer and Peter Sjӧlander as chairman, and we’re sharpening our strategic focus on the key areas of our brand and product, our engagement with our customers, our operations and on sustainability. 

“All of us at Superdry are driven by our goal of being the leading listed sustainable fashion brand. There’s a lot still to do, but I’m thrilled that we have been recognised for our efforts.

“Our accelerated sustainability targets will see all our pure cotton garments produced entirely from organic cotton by 2025, achieved through supporting 20,000 farmers in India.

“I’m in no doubt that we’re turning the corner and there’s a lot to be excited about. While a lot remains uncertain, I’m looking ahead to 2022 and beyond with real confidence as we deliver our reset.”