Superdry revenues down 11.3% amid turnaround
Written by Hannah McGrath
Superdry has reported an 11.3 per cent decline revenue for the first half of 2019, as the fashion chain continues the turnaround plan launched by founder and chief executive Julian Dunkerton.
The embattled retailer reported revenues of £367.8 million in the six months to 26 October, with e-commerce sales of £57.9 million down 10.5 per cent, from £64.7 million in the same period last year.
Retail sales decline moderated through first half, the company reported, with second quarter store revenue down 9.4 per cent, versus the first quarter being down 13.9 per cent, as key initiatives are implemented.
The company said the fall in revenue reflected “an expected year of reset”, as well as the need to address a number of legacy issues across the business.
Superdry attributed the slowdown in e-commerce sales to the implementation of a new growth plan for digital sales, including an increase in product and choice as well as greater personalisation and increased social media exposure.
It comes after a tumultuous year for the retailer, which saw Dunkerton return to the helm of the brand he founded in 2003, following collapsing profits for the company.
Dunkerton 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.
“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.”