Superdry reported “encouraging” trading on Thursday, but warned that its wholesale arm was being affected by global supply chain delays.
Updating on the first half, the fashion brand and retailer said the pandemic was continuing to “materially impact” physical store trading, with temporary and permanent store closures in both mainland Europe and the UK.
However, Superdry said that despite the ongoing disruption, store revenue had started to recover and was now up 21.7% year-on-year.
Group revenues in the 26 weeks to 23 October were down 25.3% on the same period in the 2020 full year, but off just 2.4% when compared to 2021.
In the final eight weeks of the half, group revenues were down 17.2% on the same period in 2020 and down 8.8% against 2021, which Superdry called “encouraging”.
Chief executive Julian Dunkerton said: “Superdry is recovering well from the disruption of the Covid-19 pandemic and I am really pleased with the start of the Autumn/Winter 2021 season, despite the ongoing disruption around the world.
“Our focus on full-price sales continues to deliver improvements in gross margin, and I am pleased that we are ending the half with 10% fewer inventory units than last year. We are encouraged by the performance this strategy is starting to deliver, which gives me further confidence in the full-year outlook.”
However, the group’s wholesale channel has been impacted by global supply bottlenecks.
Superdry said: “In line with the rest of the sector, the impact of global chain delays has been greater on our wholesale channel due to the need to consolidate stock to fulfil orders.
“Despatches are four-to-six weeks behind plan as a result of intake delays, but we continue to work closely with our partners and do not currently foresee a risk to the season, with the majority of this timing reversing in the second half.”
As at 1015 GMT, shares in Superdry were largely flat 296.31p.
Peel Hunt, which has an ‘add’ rating on the stock, said: “Superdry’s pre-close statement shows a steady improvement in retail and wholesale revenues over the final eight weeks of the first half. First half retail sales are down around 23% against 2020 but have returned to growth in October as the prior period clearance activity drops out of the comparatives.
“The focus on full-price sales means first half gross margins are up significantly, driving absolute gross profit improvements, underpinning a return to profitability in the 2022 full year. October’s trading stats are encouraging as consumers respond to new range launches.”
