Superdry: First half revenues increase 20.4 percent
10 Jan 2018
In its interim results for the 26 weeks ended October 28, 2017, Superdry Plc said that the company’s financial performance during the first half of the year saw continued strong growth in revenue, which converted into growth in underlying profit before income tax of 25.3 million pounds (34 million dollars), an increase of 20.5 percent year-on-year. Group revenue increased by 68 million pounds (91.7 million dollars) to 402 million pounds (542.6 million dollars), an increase of 20.4 percent. For 10 weeks to January 6, 2018, global brand revenue of 314.4 million pounds (424.2 million dollars) increased by 13.6 percent, while group revenue of 215.6 million pounds (291 million dollars) was 12.6 percent higher than the prior year, including an approximate 0.5 percent benefit from foreign exchange. Group retail like-for-like sales growth was 4.7 percent. Wholesale revenues for the period grew by 20.4 percent, while ecommerce revenues increased by 30.5 percent. Retail stores delivered sales growth of 3.1 percent.
Commenting on the company’s positive performance, Euan Sutherland, the company’s Chief Executive Officer, said in a press release: "We have delivered another strong performance demonstrating the unique advantages and attractiveness of Superdry and its relevance to customers around the globe. Our growth through our eight channels to market has further diversified the brand, both geographically and across channels, while continued innovation has further widened our product offer. Having traded through our peak trading period, the board remains confident in delivering full year underlying profit before income tax in line with the range of analyst expectations."
First half gross profit rises to 229.5 mn pounds
Gross profit for the 26 weeks increased to 229.5 million pounds (309.7 million dollars), representing a gross profit margin of 57.1 percent, a decrease of 170bps on the previous year. The reduction from the prior year, the company added, primarily reflects the strong participation of relatively lower margin wholesale sales. Underlying profit before income tax for the period was 25.3 million pounds (34 million dollars), an increase of 20.5 percent year-on-year.
Retail division revenues grew by 12.8 percent to 242.7 million pounds (327.5 million dollars) in 1H18 reflecting the continued expansion of company-owned stores together with continued positive like-for-like growth of 6.3 percent driven in particular by a strong performance in ecommerce. Ecommerce sales grew by around 31.6 percent during the period with participation of retail sales at 25.2 percent.
During the last 12 months, average retail square footage increased by 15.4 percent to 1,084k sq.ft, having opened 15 new stores, four in the UK, seven in Europe, four in the USA and closed two, resulting in 13 net new stores in the period. The company also relocated four stores in the period.
Revenues within the wholesale division increased by 34.1 percent year-on-year, delivering revenue of 159.3 million pounds in 1H18 (214.9 million dollars) with strong growth in all territories and routes to consumer being: franchise, independents and key accounts.
Underlying basic earnings per share was 25.8p compared to 21 p in the first half of 2017, while reported basic earnings per share was 9.7p against 11.5p last year. Diluted earnings per share were 9.6p against 11.5p in 1H17.
The company has announced a dividend of 9.3 pence per share, one-third of the FY17 full year dividend.