Superdry sales up but soaring wholesale hits margins

Global brand revenue, including wholesale, was up 25.2% to £756.3m in the 26 weeks to October 28.

Reported group revenue rose 20.4% to £402m and was boosted by currency tailwinds, which added £12m to the balance sheet.

Wholesale revenues rocketed 34.1% to £159.3m while retail like-for-likes were up 6.3% and total retail sales climbed 12.8% to £242.7m.

Despite wholesale’s boost to the top line, the surge affected the retailer’s margin, which is expected to decline year-on-year.

Expansion

Superdry expanded both internationally and into new product categories during the half year, focusing on its main markets of North America and China and adding performance footwear to its sports category.

The retailer, which intends to take on the likes of Adidas and Nike with its running shoes, opened the first in a series of franchised standalone sports shops and 12 sport shop-in-shops in owned stores.

Chief executive Euan Sutherland said: “We have delivered another strong performance in this half, further demonstrating the unique advantages and attractiveness of Superdry as a global digital brand.

“Our growth has further diversified the brand, both geographically and across channels, which serves to insulate the business from trading conditions in any single market.

“Our focus is on executing against the clear growth opportunities we have identified. We have a clear brand positioning, a disruptive multi-channel approach and a growing culture of operational excellence.

“The performance in this half underlines our confidence in both the strength of the brand we are building and the quality of sustainable financial performance we can deliver.”