Superdry today announced its half-year trading update covering the 26-week period to 27 October 2018. Global brand revenue has seen 6.4% growth to £831.8m, up from £781.6m in the same period last year.
The results come on the back of a profit warning made on 15 October in which Superdry said the extended period of hot weather and foreign exchange costs meant it would likely take a £10m hit for the full financial year. The announcement resulted in a 22% slump in its share price.
Superdry’s full year profits are heavily influenced by its performance in the second half, led by cold weather products with jackets and sweats accounting for 55%-60% of autumn/winter sales.
The half-year results say store sales have declined -2.3% from £181.3m to £177.4m, though wholesale sales have grown 7.8% to £171.8m and ecommerce revenue has risen 6.9% to £159.3m. Group revenue is up 3.1% to £414.6m.
“We are six months into a product diversification and innovation programme and, as we said in the summer, it will take up to 18 months for the benefits to come through.”
Euan Sutherland, CEO, Superdry
Superdry CEO, Euan Sutherland, says: “Superdry has made significant progress in the first half. We are six months into a product diversification and innovation programme and, as we said in the summer, it will take up to 18 months for the benefits to come through.
“In the meantime, we are well prepared for peak trading and the team remains highly focused on the delivery of sales growth and further efficiencies in the remainder of the year.”
Superdry co-founder Julian Dunkerton is currently campaigning to return to the company, having stood down in March. Dunkerton believes the brand’s strategy is the wrong one and is canvassing shareholders to back his return. However Superdry has said it respects Dunkerton but is standing by Sutherland and the current strategy.