Fashion chain revenues recover as restrictions lift
SUPERDRY has seen its revenue recover as shoppers returned to its stores following the lifting of Covid restrictions and it raised prices to combat inflated operating costs.
In a year-end trading update, the Gloucestershire-headquartered fashion chain reported group revenue of £600.7m - an 8 per cent rise on the previous financial year.
The company said its 140 retail stores across the UK and mainland Europe rebounded with a near 60 per cent year-on-year increase in revenue to £224.5m, driven by a more than 200 per cent uptake in sales in Q4 compared to the financial year 2021.
Despite this, the firm said footfall remained “significantly below” prepandemic levels with group revenue down almost 15 per cent on 2020.
Bosses added full-year ecommerce sales had dipped by 24 per cent yearon-year to £153.4m, which it said reflected the return of physical trading and its reduced promotional activity.
In January, the business said there would be no more sales at its stores and there would be a 2 per cent price rise on selected products.
Chief executive Julian Dunkerton said the move to a full-price trading stance would help deliver “a strong gross margin improvement.”
Mr Dunkerton added: “We are conscious of the cost-of-living pressures on consumers, meaning that now, more than ever, we must continue to deliver product that stands for what is important to them: quality, style and sustainability at great value.
“As we head into FY23 we remain cautious on the macroeconomic outlook and the impact of inflation but are confident that our strategy is position
We must continue to deliver product that stands for what is important to them: quality, style and sustainability at great value Julian Dunkerton
ing the brand for future success.”
In addition to its retail improvement, Superdry also saw “encouraging” wholesale revenue growth of 4.2 per cent year-on-year to £222.8m, despite “prolonged disruption” in European markets.
With a head office in Cheltenham, the retailer operates more than 500 branded locations across 46 countries.