Group revenue dips at Superdry, but “brand revenue up” says company

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Superdry PLC has reported a fall in third quarter revenue, as it has been impacted by subdued store and ecommerce sales driven by ongoing legacy product issues and continued unseasonably warm weather throughout the quarter.

For the 13 weeks to January 26, the high street fashion retailer reported revenue of £269.3 million, down 1.5% from £273.3 million in the comparative period a year ago.

E-commerce sales dipped 0.7% to £69.0 million from £69.5 million, while Store sales dropped 8.5% to £126.8 million from £138.6 million. This was partially mitigated by a strong performance in wholesale sales, up 13% year-on-year to £73.5 million from £65.2 million.

Meanwhile, Global Brand revenue, an adjusted performance metric which represents the equivalent value of group revenue at the values paid by consumers, increased 5.4% to £479.6 million from £454.9 million.

Chief Executive Officer Euan Sutherland said: “Superdry’s performance has remained subdued during quarter three. We continued to be impacted by the ongoing product mix and relevance issues we have previously highlighted and by the lack, until the end of quarter three and the start of quarter four, of any prolonged period of cold weather in our key markets.”

He added: “We are pleased with the early progress being made with our transformation programme, designed to reset the business and deliver a return to higher levels of growth and profitability.”

The retailer said it intensified its transformation programme in light of the challenges faced. It plans to deliver GBP50 million of cost savings by 2020.

The programme includes product diversification, shifting away from winter clothing and jackets, and the development of new Wholesale and franchise partnerships.