Cheltenham’s Superdry “Turning the Corner” says Dunkerton as company releases latest results

Superdry

Superdry, the Cheltenham-born global fashion super brand, has revealed its latest results. And while total revenue is down 21.1 per cent to £556.1 million, founder and Chief Executive Julian Dunkerton said that this is the significant disruption of Covid-19, and 39 per cent of store days lost over its last trading year, compared to just 10 per cent list in the previous year.

However, the company said that store revenue has rebounded strongly with the UK up 76 per cent and the USA performing even better, up 169 per cent, which made up for the EU which has suffered further closures (down 10 per cent).

Ecommerce sales were more modest against the extraordinary growth the company experienced in the prior year. The return to full-price trading resulted in a less pronounced uplift during the sale period, but did up drive online gross margins.

Wholesale revenues have also started to recover, increasing 12.7 per cent year on year. Superdry says it expects this recovery to continue.

The company says it remains committed to the high street and recently announced it was relocating from Regent Street in London to a prime higher footfall location on Oxford Street.

Julian said: “Like most brands with a physical presence, our performance over the past year has been impacted by the significant disruption of Covid-19, but I am really proud of how the business has stepped up and returned to revenue growth in Q4.

“Store and Wholesale revenues are recovering well despite continued subdued footfall, and Ecommerce margin is benefitting from our return to a full price stance.

We have used this time effectively to accelerate our brand reset and put the business in the best possible position for the future. We have strengthened the team with the appointments of Shaun Wills as CFO, Silvana Bonello as COO and Peter Sjӧlander as Chairman, and we’re sharpening our strategic focus on the key areas of our brand and product, our engagement with our customers, our operations and on sustainability.

All of us at Superdry are driven by our goal of being the leading listed sustainable fashion brand. There’s a lot still to do but I’m thrilled that we have been recognised for our efforts, recently being ranked 1st in the Financial Times list of Europe’s Climate Leaders 2021, and winning Drapers’ Sustainable Fashion Awards 2021 ‘Positive Change Award’.  Our accelerated sustainability targets will see all our pure cotton garments produced entirely from organic cotton by 2025, achieved through supporting 20,000 farmers in India. This initiative was recognised with my award for Best Organic Ambassador by The Soil Association, the UK’s only organic awards.

“I’m in no doubt that we’re turning the corner and there’s a lot to be excited about. Trading has been encouraging since the reopening of our stores, and we’ll take a big step forward as a brand with the opening of our global flagship store in Oxford Street later in the Autumn. Whilst a lot remains uncertain, I’m looking ahead to 2022 and beyond with real confidence as we deliver our reset.”