Superdry reports drop in full-year revenue, but returns to growth in Q4

Superdry has reported a 21 percent drop in full-year revenue as Covid-19 continued to impact the business, but said it could “clearly see the light at the end of the tunnel” as it returned to growth in Q4.

The British fashion retailer said its revenue in the 12 months to April 24 2021 was 556.6 million pounds compared to 704.4 million pounds a year earlier.

By channel, store revenue fell 50.9 percent to 140.9 million pounds due to lockdowns and restrictions while stores were reopened. Wholesale revenue dropped 19.9 percent to 212.8 million pounds while e-commerce increased 33.8 percent to 202.9 million pounds.

In the fourth quarter, the business showed signs of recovery with an uptick of 0.8 percent in revenue, driven by a 26.6 percent increase in e-commerce and wholesale up 13.5 percent. Store sales were still down 51.5 percent.

“Our strengthened e-commerce presence has helped mitigate the impact from enforced closures of our stores,” said founder and CEO Julian Dunkerton in a statement. “We returned to revenue growth in Q4, and our commitment to a full price stance over the period has seen significant online margin improvement.”

Superdry returns to growth in Q4

The company also said it managed to reduce its total stock units by 14 percent in total year-on-year despite the pandemic, delivered through “targeted clearance activity and a reduced buy”.

The retailer closed the year with net cash of 39.4 million pounds compared to 36.7 million pounds a year earlier.

“Despite all the disruption of the past year, Superdry has demonstrated its resilience and we have used this time to ensure the business is in the best possible shape for the future, really focusing on developing our digital presence and making strides towards our goal of being the most sustainable listed fashion brand,” Dunkerton said.

The company said there had been “encouraging trade” since the re-opening of its owned stores in the UK last month with the initial run rate ahead of like-for-like trading through FY21. However, EU trading remained suppressed due to continued restrictions.

“The early signs following the reopening of our UK stores are encouraging, as lockdown restrictions start to lift, and we can clearly see the light at the end of the tunnel. In short, we are on track with our reset of the brand and there’s a lot to look forward to,” Dunkerton said.

Looking ahead, the company said it is “confident of growth in FY22 revenue and profitability compared to FY21 assuming no further material national store lockdowns and a continuing recovery in footfall and consumer demand through the period”.