Following the relaxation of Covid limitations, buyers went back to physical stores, resulting in a revenue turnaround for Superdry in its latest full-year trading update.
The British fashion retailer recorded group revenue of 159.7 million pounds in the fourth quarter ending April 23, increasing 17 percent year over year and 6.7 percent year over two years.
Following the end of the lockdown, shoppers returned to physical stores, resulting in a 203 percent increase in Q4 store sales over the previous year, or a 22.9 percent increase over two years prior.
Online sales were down 21.5 percent compared to a year ago and 6.6 percent compared to two years ago for the same reason.
FY revenue recovery
Superdry’s full-year revenue was 600.7 million pounds, up 8% from the previous year but still 14.7 percent down from pre-pandemic levels from two years ago.
Store revenue was up 59.8% year over year but down 21.8 percent year over year, while e-commerce revenue was down 24% year over year but up 1.2 percent year over year.
“We are excited by the progress we are making as we execute our strategy of returning the Superdry brand to a premium position,” founder and CEO Julian Dunkerton told investors.
Despite “ongoing difficult trading conditions and market turbulence,” he said, the company’s full-price trading strategy, which he expects to achieve a “solid” gross margin gain in FY22.
“We are aware of the cost-of-living challenges on consumers,” Dunkerton stated, “which means that today, more than ever, we must continue to produce items that speak for what matters to them: quality, style, and sustainability at a great value.”
He stated the company is “conservative” about FY23 because of “the macroeconomic outlook and the impact of inflation,” but that he is “sure that our strategy is positioned the brand for future success.”