Superdry first half sales down 11.3% as it works through turnaround plan
Superdry’s revenue declined by 11.3% to £367.8 million in the first half of its financial year.
In a pre-close trading update covering the 26 weeks to 26 October, the fashion retailer said in-store sales fell by 11.7% while online sales dropped by 10.5%. Wholesale revenue was also down, falling by 11.2%.
The company is currently working through a turnaround strategy following founder Julian Dunkerton’s return to the business as chief executive.
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.”
The company said a focus on full price sales and a move away from a policy of constant promotions impacted revenue in the period but also drove an increase in-store gross margin.
In addition, the retail sales decline moderated throughout the period with second quarter store revenue down 9.4% compared to a decline of 13.9% in the first quarter.
Looking ahead, Dunkerton said: “We have taken swift and decisive action to implement strategic changes as part of the business reset, which is a two to three-year programme to gain full control of the product and costs. We are confident in delivering further benefits from reset initiatives across Superdry in the second half. “
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