Superdry reports dip in sales following promising AW21 start

Superdry has reported a drop in group revenue, but confirmed it had seen an "encouraging" start to AW21.

In the eight week period ending 23 October, Superdry saw an 8.8% decrease in group revenue. This year's H1 group revenue also dropped by 2.4% compared to the previous year. With a larger decrease of 25% in contrast to two years ago.

The brand's ecommerce is up 6.6% on a two-year basis, but down 30% for the H1 period since last year.

Despite the easing of COVID-19 restrictions, footfall remained “subdued” in all markets and was down 27% in the UK. Wholesale business decreased by 9.7% in the eight weeks to 23 October, but saw an overall increase of 1.2% year-on-year.

Superdry's first half performance was negatively impacted by temporary closures in Europe due to COVID-19. This includes the permanent closure of 15 stores, including Regent Street in July.

Following these closures, Superdry now highlights its excitement for the opening of its new flagship store in Oxford Street on 10 November. The brand hopes the store will be a big statement about the future of the brand.

Superdry's full-price performance through the Summer has translated into stronger overall performance going into the peak Autumn months. Womenswear is up 8% compared to FY20 and represented 8 of 10 top selling products in October.

Julian Dunkerton, Superdry Founder and CEO, said: “Superdry is recovering well from the disruption of the Covid-19 pandemic and I am really pleased with the start to the AW21 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."