UK's Superdry reports 3.6% YoY revenue growth in H1 FY23

E-commerce increased 1.6 per cent YoY to £63.3 million in H1 FY23, with the reversion in consumer behaviour somewhat offset by a step-up in performance on third party sites. Retail revenue (combined stores and e-commerce) ended the half up 9.5 per cent YoY, which helped offset the decrease in wholesale revenue of 5.2 per cent YoY, the company said in a press release.

During H1 FY23, the gross margin decreased 3.1 percentage points YoY to 52.1 per cent due to a higher mix of third-party sales within the e-commerce channel, deferred wholesale price increases, and wholesale clearance activity designed to continue inventory reduction programme.

The adjusted loss before tax for the first half was £13.6 million in H2 FY23, a decrease of £10.8 million from a loss of £2.8 million in H1 FY22 and after the benefit of £17.2 million from foreign exchange gains.

Over the 9-week period ending December 31, 2022, Superdry’s group revenue was up 4.5 per cent versus FY22 as physical store trading continued to recover, offsetting a material reduction in wholesale dispatches. Retail revenue grew by 24.9 per cent, reflecting both a strong recovery in stores, with more seasonal weather re-igniting strong demand for outerwear. This was supported by a more strategic Black Friday and end-of-season sale.

The company is mindful of the challenges facing the consumer as it heads into 2023 and remains very cautious about the potential for a soft spring. When combined with current margin run-rates and the underperformance of the wholesale division, Superdry expects the adjusted profit before tax guidance to broadly breakeven (previously £10–20 million).

“The Superdry brand has real momentum, and I’m delighted by how our retail trading continues to strengthen. We’ve done this against a difficult macroeconomic backdrop by delivering well-designed, affordable, and responsibly sourced products which have resonated well with customers. Our coats performed really well in the run up to Christmas, and womenswear continues to be a highlight for us. Stores continued to recover strongly and online had its biggest ever week over Black Friday, helped by our new e-commerce platform which is delivering real benefits,” said Julian Dunkerton, founder and chief executive officer.

Fibre2Fashion News Desk (DP)