The fashion retailer mentioned that sales in the first half of its financial year were impacted by a “challenging consumer retail market and the abnormally mild autumn”.
Unseasonal weather during the early autumn delayed the uptake of its autumn/winter range, leading to decreased sales in the six months ended 28 October.
Retail sales dropped by 13.1% compared to the previous year, while wholesale sales saw a 41.1% decline, which was expected due to the decision to exit its US wholesale operation.
Although there has been some improvement in performance since then, sales in the six weeks following the half-year are still down approximately 7% on a like-for-like basis. However, Superdry mentioned that it had made progress on its cost savings program and is on track to achieve £35 million in savings within the year.
The company also noted that its inventory reduction program was on track as it continued to clear aged stock.
CEO Julian Dunkerton stated, “The unseasonal weather through the early autumn led to a delayed uptake of our Autumn/Winter range and this impacted sales in the first half of the year.”
“While we have seen modest signs of improvement with the recent colder weather, current trading has remained challenging, and this is reflected in the weaker-than-expected business performance. The operational progress we have made in the first half has been more encouraging with the IP sale for the South Asian region and strong progress on our cost efficiency program.”
Image Source: Tang Yan Song @ShutterStock
