Superdry swings to profit, but warns of drop in FY23 earnings

Superdry has returned to profit and posted an increase in revenue in its most recent full-year results as shoppers flocked back to physical stores following the end of last year’s lockdowns.

In its preliminary results for the year to April 30, the British fashion retailer made an adjusted profit before tax of 21.9 million pounds compared to a loss of 12.6 million pounds a year earlier.

In that same period, revenue increased 9.6 percent to 609.6 million pounds, “largely as a result of lapping enforced store closures and lifting of restrictions in our key markets”.

In more recent trading for the 22 weeks to October 1, revenue was up 7 percent year-over-year, with the retailer seeing particularly strong autumn-winter trading.

Challenging backdrop

“These are exceptional times for retail and for the economy more generally, and like all brands we’re having to work harder than ever to drive performance,” founder and CEO Julian Dunkerton said in a statement.

“Against that backdrop, I am pleased that we managed to return the business to full-year profit, driven by increased full price sales, whilst also making strong strategic progress,” he said.

Despite the strong results, the company warned of difficulties ahead against a backdrop of rising inflation and consumers tightening their purse strings.

The company said: “We also highlight the importance of refinancing our Asset Backed Lending facility which expires at the end of January 2023.

“However, we continue to make good progress across our strategic pillars and we believe these initiatives will help to offset some of that potential risk.”

Superdry said for FY23 it expects its adjusted profit before tax to drop to between 10 million pounds and 20 million pounds.