Revenue has slumped at Superdry in the 26 weeks to the end of October, in what the retailer said was an “expected year of reset” amid legacy issues at the business.
Group revenue in the period fell by 11.3% compared to 2018 to £367.8m.
Focusing on full-price sales and reducing promotions hit revenue, the retailer said, but helped drive a 3.2% increase in store gross margins. Full-price sales were around 70% of Superdry’s sales mix in the first half of this year, compared to 51% in the first half of 2018.
Store revenue fell by 11.7% to £157m in the period and ecommerce revenue by 10.5% to £57.9m. Wholesale revenue was also down, dropping by 11.2% to £152.6m
Superdry said it was working through legacy stock in its owned stores and was focusing on delivering better experience and more product choice.
The retailer blamed its poor wholesale performance on a previous strategy of heavy discounting and lower quality product, adding that forward orders for spring 20 looked ”more promising.”
Julian Dunkerton, chief executive, said: “We are making good progress with the start to our turnaround plan for Superdry, returning the business to its design led roots. We have always said it will take time, but we have a strong team which is working incredibly hard to deliver this plan. I’m genuinely excited by the new injection product which has started to land in stores for this peak and even more excited about the new ranges signed off for next year.
“We are moving the business away from a reliance on constant promotions, and while this focus on full price sales has affected revenue in the first half, this is being partially offset by a better gross margin performance. There is good momentum in the business, and I remain confident of returning Superdry to sustainable long-term growth.”
Superdry co-founder Dunkerton was appointed as CEO in October this year and will lead the business until April 2021, having been reinstated to the Superdry board amid an acrimonious public battle earlier this year.