British clothing retailer Superdry Plc feels its reform efforts are on track. On Thursday, the company said in an interim statement that it was able to return to a small surplus in the first half of the 2021/22 financial year. Sales fell just short of the previous year’s level.
According to the latest figures, group sales for the 26 weeks ended October 23 were £277.2 million (EUR 332.7 million), down 1.9 percent from the same period last year. In the stationary stores, sales rose by 21.5 percent to 103.0 million British pounds, in e-commerce they fell by 30.0 percent to 62.2 million British pounds. In the wholesale business, Superdry improved sales by 2.7 percent to £112.0 million.
By restricting discounts, the clothing retailer was able to increase its gross margin from 51.7 to 55.2 percent. The company also returned to profitability as it cut operating costs, posting net income attributable to shareholders of £2.5 million, up from the first half of last year a loss of £15.4 million had been posted. The loss before taxes adjusted for special effects was reduced from 10.6 to 2.8 million pounds sterling.
The second half of the year has also been successful so far: In the eleven weeks before January 8, group sales exceeded the corresponding previous year’s level by 19.6 percent, Superdry announced. The stationary stores made a significant contribution to the significant increase: Compared to the same period in the previous year, which was characterized by temporary lockdowns, their revenues rose by 84.4 percent.
CEO Julian Dunkerton saw the upward trend as proof of the impact of the ongoing reforms: “I am very satisfied with our progress in implementing our strategic measures. There are clear signs of brand and financial recovery,” he said in a statement. Despite the “continued uncertainties surrounding Covid-19 and the macroeconomic environment,” Dunkerton says he has confidence in the “increasing momentum” in the reset effort and strengthening the brand.