Superdry shares fall sharply as retailer remains jittery over business outlook – but in-store sales are up as shoppers eschew online shopping
- Superdry shares are down around 5% today and are down nearly 70% a year
- The group has seen in-store sales increase, but online sales have fallen over the past year
Superdry Shares fell sharply on Thursday after the retailer issued warnings about its business outlook amid soaring costs and high inflation.
The fashion group has seen sales increase by 8% in the past year, amid the reopening of all physical stores and the lifting of Covid restrictions.
But he told investors he was “aware of the cost of living pressures on consumers” and remained “cautious about the macroeconomic outlook and the impact of inflation”.
Cautious: Superdry shares fell sharply as the retailer revealed it remains cautious about its outlook
Superdry shares fell 5.01% or 7.80p to 147.80p this afternoon, having fallen more than 68% in the past year.
A growing number of retailers expect slower sales and reduced profits as economic pressures intensify and consumers tighten their purse strings.
Superdry, best known for its sweatshirts, hoodies and jackets with Japanese text, said its revenue for the 52 weeks to April 23 was £600.7million, while store sales jumped about 60%.
Attendance, however, remained significantly below pre-pandemic levels.
Online store revenue fell 24% year-on-year, “reflecting an element of a return from channels to physical commerce,” the group said.
But Superdry added that it hoped to ‘achieve strong gross margin growth’ for the 2022 financial year despite ‘challenging business conditions and market turbulence’.
Retailers like Superdry have had to navigate stagnant supply chains and face huge drops in store visits during the pandemic, while also dealing with widespread staff shortages.
Julian Dunkerton, Chief Executive of Superdry, said today: “We continue to execute on our strategy to restore the Superdry brand to a strong position and I am excited about the progress we are making.”
“Despite the challenging trading conditions and market turmoil, our focus on full-price trading will result in strong gross margin improvement for FY22.
“We are aware of the cost of living pressures on consumers, which means that now, more than ever, we must continue to provide products that represent what is important to them: quality, style and durability at excellent value for money.
“As we head into FY23, we remain cautious about the macroeconomic outlook and the impact of inflation, but we are confident that our strategy positions the brand for future success.”