British fashion group Superdry is awarding shareholders a special dividend after posting double-digit increases in revenues and profits in the year ending 28 April 2018.
The business achieved a 22.1% increase in global brand revenue of £1.6bn during the period while underlying profit before tax was up 11.5% to £97m.
Strong growth was achieved across all channels with retail up 9.2% to £548.6m, driven by e-commerce revenue up 25.8%. Store sales were up 3.4% and wholesale up 29.6% to £323.4m, including eight new markets reached in the year. The business added 125,000 sq ft of retail space during the period and at the year end had 246 owned stores and 412 franchise or licensed stores.
On the back of the performance a full year ordinary dividend of 31.2p per share was awarded (up 11.4%) together with a special dividend of 25p per share, as a result of continued strong cash generation.
“Superdry has had another strong year, enhancing our position as a Global Digital Brand with a multi-channel approach. We have made good progress in delivering our strategy and significantly strengthened our platform and capabilities, while delivering another year of double digit growth in sales and profitability,” said CEO Euan Sutherland.
“Our focus remains on executing our growth strategy and realising the potential we have identified across products, geographies and channels. In Superdry we have a brand that stands for quality, design, value for money and relentless innovation. Our eight routes to market mean we can continue to tailor by territory and channel, while our innovative approach to digital marketing means we can enhance our relevance to consumers around the world. This is underpinned by our culture of operational excellence, our people and our values,” he added.
Analyst Fiona Cincotta of www.cityindex.co.uk said shareholders had been rewarded for sticking with Superdry, following the shock downgrade in the business’s share price earlier this year when it posted a 6% fall in revenue in the fourth quarter, which it put down to the adverse weather conditions, when most of the UK was left covered in snow by the so-called “Beast from the East”.
“Superdry has indeed managed to generate healthy levels of cash, partly owing to a strong showing from its online and wholesale operations,” she said. However she added: “Question marks remain over the company’s US expansion, with its 30 stores there putting in a less-than-impressive performance last year.” Looking forward to 2019, Superdry said it planned to return to breakeven in the US.