Superdry's online sales warm up as store revenue drops
By Duncan Ferris
Date: Thursday 08 Nov 2018
(Sharecast News) - Superdry reported on Thursday that strong wholesale and online revenue offset a poor in-store sales after unseasonably hot weather conditions in the first half of the year.
Revenue in the 26 weeks to 27 October group of £414.6m was up 3.1% over the same period a year before, with wholesale revenues rising by 7.8% to £171.8m and online sales jumping 6.9% to £65.4m.
The clothing retailer's in-store sales dropped by 2.3% to £177.4m, despite a net growth of 33 expansion stores and a 9.4% increase in average retail space, as shoppers turned away from the high street and weather behaved unpredictably.
However, the London listed company is about six months into a programme to reduce its reliance on clothing like jackets and sweatshirts, which currently account for 55-60% of autumn winter sales, in favour of dresses, skirts, women's tops and denim, as well as premium, sports and licensed goods.
Euan Sutherland, chief executive of Superdry, said: "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."
The second half of the year heavily influences the company's annual performance due to colder winter weather and Superdry reported that key markets are already starting to see a boost in sales after colder weather last week.
"Superdry is a strong brand with significant growth potential, based not only on product diversification and innovation, but also on our category extension and geographic expansion opportunities and our ability to leverage our multi-channel operating model to serve customers in whichever way suits them best," said Sutherland.
Superdry's shares were up 1.11% at 866.00p at 0830 GMT on Thursday.
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