Superdry reports decline in store sales
Superdry has said it expects its full year underlying pre-tax profit to be in the range of £96.5 million to £97.5 million although it reported that sales in its stores had declined in its fourth quarter.
In a pre-close trading statement, the fashion retailer said group revenue rose by 16% to £872 million in the year to 28 April as trade was driven by wholesale and ecommerce channels where sales increased by 29.6% and 25.8% respectively.
Meanwhile, global brand revenue climbed by 22.1% to £1.6 billion.
Euan Sutherland, Superdry chief executive, said: “Superdry has delivered another good year of brand revenue and profit growth as we have sharpened our focus on our successful global digital brand strategy. We benefit from a clear brand positioning, an agile infrastructure that serves our global consumers through a truly multichannel proposition and increasing operational excellence.”
The company said it is continuing to benefit from the relative weakness of sterling although store-based revenues remain under pressure and were down 6% in the fourth quarter compared to an 18.2% uplift online. In addition, revenues in the quarter were impacted by snow disruption in key markets and lower year-on-year average temperatures at the start of the spring/summer season.
During the year, Superdry launched new localised ecommerce sites in the US and Switzerland and increased the number of Superdry franchise locations by 24%. Some 75 franchise stores were opened across 33 countries.
It is also working to strengthen awareness and perception of its brand through integrated digital marketing activity, collaborations and sponsorships. This includes its Superdry Sounds summer music festivals campaign.
Looking ahead, Sutherland added: “While the consumer environment remains challenging, we are confident that Superdry’s reputation for quality, design detail and strong value for money, underpinned by our continued investment in the business, leaves us well placed. We remain focused on the growth opportunities ahead and confident in the quality of sustainable earnings growth we can deliver over the long-term.”
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