Superdry has reported a fall in first-half profits and even though Christmas performance strengthened, has cut full-year expectations to breakeven.

Julian Dunkerton

Julian Dunkerton: ‘We don’t expect market conditions to become easier any time soon’

Superdry attributed an interim adjusted pre-tax loss of £13.6m – up from a loss of £2.8m in the comparable period of the previous year – primarily to a drop in wholesale alongside a return to normal rents and rates post-Covid.

Group revenue rose 3.6% to £282.2m in the first half to October 29, 2022. Over the nine-week Christmas period to December 31, group sales rose 4.5%.

Over Christmas, retail revenue climbed by 24.9%, which Superdry said reflected “both a strong recovery in stores, with more seasonal weather reigniting strong demand for our outerwear…  supported by a more strategic and well-executed Black Friday and end-of-season Sale.

“Importantly, we saw a recovery in our store sales beyond pre-Covid levels during a robust holiday trading period.”

However, wholesale revenues fell 5.2% in the first half “due to a lagged recovery after Covid and shipment timing”. In the year to date, they are down 18%. 

In light of challenging conditions for consumers, Superdy said it was “very cautious about the potential for a soft spring”. It is acting to cut costs but has dropped guidance on full-year adjusted pre-tax profits to breakeven, from between £10m and £20m previously.

Superdry chief executive Julian Dunkerton said: “The Superdry brand has real momentum and I’m delighted by how our retail trading continues to strengthen. We’ve done this against a difficult macroeconomic backdrop by delivering well-designed, affordable, and responsibly sourced products which have resonated well with customers.

“Our coats performed really well in the run-up to Christmas and womenswear continues to be a highlight for us. Stores continued to recover strongly and online had its biggest ever week over Black Friday, helped by our new ecommerce platform, which is delivering real benefits.

“Despite the underlying brand recovery, our profits in the first half fell short of expectations mainly due to the underperformance of wholesale. We reorganised our team and our approach to support our wholesale partners and expect to see their confidence return following the retail success of autumn/winter 2022.

“Whilst we did trade well through November and December, the outlook for the remainder of the year is uncertain and as a result, we are moderating our profit outlook to broadly breakeven. We don’t expect market conditions to become easier any time soon but with a new financing package in place and the brand in great health, we approach the year ahead with optimism.”

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