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Superdry sales soar

Full-year global brand revenue at Superdry jumped by 22% year on year, driven by growth across all channels.

In a pre-close statement for the year to 28 April the business said group revenue increased by 16% on 2016/17 to £872m.

Wholesale sales increased by 30% year on year to £323.4m, online sales were up 26% to £163.1m and in store sales increased by 3.4% to £385.5m for the year.

The business said it expects full year profit before tax will be in the range of £96.5m to £97.5m, representing double digit growth on 2016/17.

However, full-year gross margins are anticipated to have declined year on year by around 200 basis points.

Superdry said it continued to benefit from the relative weakness of sterling, and this foreign exchange impact was approximately 60 basis points in the fourth quarter of the year.

It added that store-based revenues remained under pressure and throughout the fourth quarter revenues were impacted by snow disruption in key markets and lower year-on-year average temperatures at the start of the spring season.

During the year Superdry entered eight new markets through wholesale and launched country-specific websites for the US and Switzerland. It also implemented a new order management system and extended the capability of its European and US distribution centres.

The business increased the number of Superdry franchise locations by 24% year on year, with 75 franchise stores opened across 33 countries.

Superdry said the brand’s development in China remains “in line with plans” and underlying performance in the US continues to be encouraging.

Performance in the US store base continued to be impacted by both landlord construction disruption, which affected its four existing stores, and lower-than-anticipated tenancy levels in two key new locations. The disruption plus accelerated investment in bringing its US wholesale operation in-house has led the US business to make a loss of approximately £3m rather than the previous guidance for a small profit in the full year.

Euan Sutherland, chief executive, said: “Superdry has delivered another good year of brand revenue and profit growth as we have sharpened our focus on our successful global digital brand strategy. We benefit from a clear brand positioning, an agile infrastructure that serves our global consumers through a truly multi-channel proposition and increasing operational excellence. Our multi-channel proposition means consumers can choose how they want to engage with the brand, allowing them to switch easily between our stores and our digital channels.

“While the consumer environment remains challenging, we are confident that Superdry’s reputation for quality, design detail and strong value for money, underpinned by our continued investment in the business, leaves us well placed. We remain focused on the growth opportunities ahead and confident in the quality of sustainable earnings growth we can deliver over the long term.”

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