Superdry H1 revenue up 3.6 percent thanks to strong jacket sales

Superdry has reported a 3.6 percent increase in revenue in the first quarter of the year as it benefited from a positive performance at its owned stores and strong jacket sales.

Store revenue increased 14.4 percent “as collections resonated well with customers”, while e-commerce revenue grew 1.7 percent as consumers moved away from online channels and towards physical stores following the end of lockdown.

On a less bright note, wholesale revenue dropped 5.2 percent following low levels of dispatches in October which it said are expected to partially reverse in the second half of the year.

Margin dilution was in excess of 200bps, primarily from wholesale intake margin pressure.

Founder and CEO Julian Dunkerton said he was “pleased” with the company’s performance against a backdrop of “extremely challenging” conditions “which weren’t helped by the unseasonably warm weather in October and into November”.

Jackets and party dresses shine

He said: “However, by combining great products with affordable prices, we managed to grow sales in the first half. Our AW22 collection has been really well received by customers, especially our jacket range and party dresses, and it’s great to see store sales recovering well.

“I am also encouraged with how we have started the second half, which has seen our biggest ever week for e-commerce orders driven by a return to record levels of jacket sales over the Black Friday period and good momentum through the recent spell of colder weather.”

But Dunkerton added that the company is “under no illusions that consumer confidence is fragile and that the picture is unlikely to change quickly”.

Superdry also announced Friday it has secured a new 80 million pound loan facility ahead of its January deadline.

The update follows a report earlier this month by The Times claiming Superdry boss Dunkerton, who currently owns 23.9 percent of the business, is considering selling the business after its share price has plummeted in the past year.