British clothing firm Superdry's revenue climbs 2.1% in FY23

The gross margin contracted by 3.2 percentage points to 52.8 per cent in FY23. This was primarily due to efforts to clear aged stock, an increased mix of third-party online sales, and deferred price increases in the wholesale sector, the company said in a press release.

Superdry's total operating costs swelled by 9.6 per cent to £341.7 million in FY23. The adjusted loss before tax stood at £21.7 million in FY23, a significant fall compared to the previous year's adjusted profit of £21.6 million. The loss was mainly impacted by a return to normal business rents and rates after a period of COVID-relief, as well as the underperforming wholesale sector.

The statutory loss before tax was reported at £78.5 million, compared to the statutory profit of £17.6 million in FY22. The sharp decline was due to non-cash impairment charges and other adjusting items.

Julian Dunkerton, founder and chief executive officer, said: “This has been a difficult year for the business and the market conditions have been extremely challenging, especially in wholesale. We’ve looked closely at how we operate and have taken decisive actions to improve our position, rebuild liquidity, and recapitalise our balance sheet, through careful preservation of cash and a re-engineered cost base.

“The good news is that despite the external turbulence, the brand is in sound health and has momentum. Stores and e-commerce delivered a strong sales performance, and I’m excited by our collections for the autumn/winter 23 season. While wholesale remains very challenging, I believe the new team in place will recover this business in the medium-term. I’m really excited by our new partnership in Asia, finalised after year-end, which not only has helped rebuild our balance sheet but will ensure Superdry can achieve its potential as a truly global brand.”

Fibre2Fashion News Desk (DP)