Superdry posts small sales rise after stores reopen

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Superdry PLC (LON:SDRY) said quarterly revenue inched up 1% but full-year figures were still down 21% compared to last year.


The faux-Japanese retailer said the reopening of stores in the UK has been encouraging but EU trading remains suppressed due to continued restrictions.


READ: Superdry appoints serial board member as new chairman


The outlook remains uncertain as it is not clear how consumer demand will recover, though Superdry said it is confident in growing revenue and profits in the year ending April 2022.


Profitability will be supported by higher gross margins from the restored full price discipline and lower store costs, partially offset by the end of government support and brand marketing investment.


In the year to 26 April, revenue shed 21% to GBP556mln, with stores down 51% as 39% of trading days were lost.


E-commerce was up 34% to GBP229mln and wholesale tumbled by a fifth to GBP212mln.


Cash at year-end was GBP39mln, with bank facilities undrawn.


“We are particularly excited for AW’21 where the new collections represent a huge step forward and progress for the brand; timely as occasions return and the group’s social media activity ramps up,” analysts at Liberum commented.


“This combination which should be driving higher organic traffic could combine to deliver a robust trading performance as restrictions ease in the UK, EU and US. We are very optimistic on SDRY and its positioning and with an enhanced leadership team and very strong ESG credentials; investors should pay close attention as it is far too cheap.”


Shares climbed 16% to 319.5p on Thursday morning.


–Adds analyst comment, shares–

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