TIDMSDRY
RNS Number : 3096E
Superdry PLC
05 November 2020
Superdry Plc
("Superdry" or "the Company")
5 November 2020
Pre-Close Trading Statement
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Continued progress on brand reset despite Covid-19; AW20 fully
launched
Superdry today announces a trading update covering the 26-week
period to 24 October 2020 ("H1 21", "H1" or "the period").
Q2 YoY Change(1) H1 YoY Change
Group Revenue (22.8)% (23.3)%
----------------- --------------
Channel Revenue
----------------- --------------
Store (32.1)% (44.8)%
----------------- --------------
Ecommerce 16.9% 49.8%
----------------- --------------
Wholesale (28.0)% (28.8)%
----------------- --------------
Total revenue declined (23.3)% in H1, with a modest improvement
quarter-on-quarter to (22.8)% in Q2 (Q1: (24.1)%), reflecting the
challenging trading environment as a result of continued disruption
from Covid-19, partially offset by the strong Ecommerce
performance.
Stores continue to be impacted by Covid-related measures
suppressing footfall, particularly in large city centre locations.
Like-for-like store trading in the last six weeks of H1 was
(32.4)%, with UK trade impacted by continued social distancing
measures, partially offset by stronger performance in Europe where
footfall declines have been less severe. As at 5 November, 122
stores are now temporarily closed across England, Wales, France,
Belgium and Ireland, with 117 stores still open and trading.
Ecommerce is performing well and strengthened through Q2 21,
with like-for-like sales up 51.9% in the last six weeks of H1. The
improvement was driven by owned site sales, which increased 68.9%
year-on-year coinciding with the launch of our new AW20 product and
the targeted clearance of aged stock.
Wholesale faces many of the same headwinds as Stores due to
Covid-19 restrictions and uncertainty. The performance in Q2 in
part reflects later phasing of AW20 forward order deliveries, with
68% shipped year to date compared to 84% at the same time last
year, and the deferred intake of stock due to the widespread supply
chain disruption earlier in the year from Covid-19.
In response to Covid-19 we have increased promotional activity
to clear excess inventory, reducing full price mix(2) and Retail
gross margin in the first half. This has been partially offset by
the continued focus on both cost management and the cash
preservation actions beginning in late FY20. Given the continuing
disruption, we expect these margin dynamics to continue for the
remainder of FY21.
The brand reset remains on track, despite the current
unprecedented levels of disruption and volatility. At this stage we
are experiencing national and regional lockdowns in the UK and
internationally which will restrict the operations of our store
estate, however we are focused on maximising revenues over the
Black Friday trading period from Ecommerce. We have in place
commercial and operational plans to capture the expected elevated
demand online across this important period. We are managing cash
and costs tightly as we did during the initial lockdown, continuing
to drive our strong liquidity position. At 3 November we have a net
cash balance of GBP22.2m (2019: GBP(16.4)m) as well as access to
our recently refinanced and currently undrawn borrowing
facilities.
Julian Dunkerton, Chief Executive Officer, said:
"Covid-19 continues to disrupt our store and wholesale channels,
but this is being partially mitigated by strong sales through our
Ecommerce operations. This has been an important period for
Superdry, with the launch of our full Autumn/Winter 20 ranges and a
true focus on using our social channels to reach our customers and
bring our brand reset to life. This activity is delivering record
levels of engagement through our influencer-led Autumn campaigns,
and we will focus our energies in this area over the coming months
led by our new Chief Marketing Officer, Justin Lodge.
I am particularly proud of our new sustainable ranges, a key
step towards our goal of becoming one of the most sustainable
clothing brands in the world.
The external outlook is very uncertain. However, we have
financial flexibility and are making good progress with our
strategy and brand reset. We are determined to do the right thing
by all our stakeholders - including colleagues, our retail and
wholesale customers and investors - to ensure the business and
brand returns to success."
Notes:
1. Q2 21 is defined as the 13-week period to 24 October 2020. Q2
20 is defined as the 13-week period to 26
October 2019. "Q2 YoY Change" in the table is the comparison of
these two periods.
Foreign currency sales are translated at the average rate for
the month in which they are made.
2. Full price sales mix relates to the proportion of retail
sales made at RRP in full priced stores and owned websites
only.
For further information:
Superdry
Adam Smith adamj.smith@superdry.com +44 (0) 1242 586747
Candice Johnson candice.johnson@superdry.com +44 (0) 1242 578376
Media enquiries
Tim Danaher, Imran Jina superdry@brunswickgroup.com +44 (0) 207 404 5959
Notes to Editors
The Superdry brand is obsessed with design, quality and fit and
committed to relentless innovation. We design affordable, premium
quality clothing, accessories and footwear which are sold around
the world. We have a unique purpose to help our consumers feel
amazing through wearing our clothes. We have a clear strategy for
delivering continued growth via a disruptive multi-channel approach
combining Ecommerce, Wholesale and physical stores. We operate in
61 countries and have over 4,100 colleagues globally.
Cautionary Statement
This announcement contains certain forward-looking statements
with respect to the financial condition and operational results of
Superdry Plc. These statements and forecasts involve risk,
uncertainty and assumptions because they relate to events and
depend upon circumstances that will occur in the future. There are
a number of factors that could cause actual results or developments
to differ materially from those expressed or implied by these
forward-looking statements. These forward-looking statements are
made only as at the date of this announcement. Nothing in this
announcement should be construed as a profit forecast. Except as
required by law, Superdry Plc has no obligation to update the
forward-looking statements or to correct any inaccuracies
therein.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain. The person responsible for this announcement on
behalf of Superdry is Ruth Daniels, Group General Counsel and
Company Secretary of Superdry.
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