18:00 Thu 07 Nov 2019
Superdry PLC - Pre-Close Trading Statement
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Pre-Close Trading Statement
Reset underway with full price stance protecting margin and brand
Performance Highlights
|
26 weeks to ("H120") £m |
26 weeks to £m |
Change |
Group revenue |
367.8 |
414.6 |
(11.3)% |
|
|
|
|
Channel revenue (1) |
|
|
|
Store |
157.3 |
178.1 |
(11.7)% |
E-commerce |
57.9 |
64.7 |
(10.5)% |
Wholesale |
152.6 |
171.8 |
(11.2)% |
|
|
|
|
Store gross margin |
71.4% |
68.2% |
+3.2%pt |
|
|
|
|
Average retail space ('000's sq. ft.) |
1,187 |
1,186 |
+0.1% |
Summary Highlights
· Revenue decline of 11.3% reflects an expected year of reset, and the need to address a number of legacy issues across the business.
· Retail sales decline moderated through first half, with Q2 store revenue down 9.4% versus Q1 down 13.9% as key initiatives are implemented.
· Focus on full price sales and reducing promotional activity impacting revenue but driving a +3.2%pt increase in store gross margin. Full price sales mix (2) averaging 70% H120 versus 52% H119.
· Decisive action taken and positive indicators of future performance underpin full-year expectations.
Performance by channel
In our owned stores we are working through legacy stock whilst trading against periods of significant promotional activity in the prior year. A focus on delivering an improved customer experience and choice, with more fixtures, more stock and more options have supported the improved Q2 performance. As expected, the full price stance has resulted in a sales decline, but this has been partially offset by an improvement to gross margin.
The sales decline in E-commerce has also slowed as we have begun executing on our growth plan. This includes the injection of new product to increase choice, making legacy options available online, delivering greater personalisation, improving the shopping experience and increasing social media exposure. We are also seeing the benefit to gross margin from our full price stance, although this has been offset by lower margin third party growth.
Our Wholesale channel continues to be impacted by the previous retail strategy of heavy discounting and lower quality product, along with a change to align deliveries of forward bought product to the requirements of Wholesale customers rather than our reporting calendar. The forward order performance for our Spring Summer 2020 range is more encouraging, as Wholesale customers have reacted positively to a full price retail position and improved product design and quality.
"We are making good progress with the start to our turnaround plan for
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
Outlook
We have taken swift and decisive action to implement strategic changes as part of the business reset, which is a two to three year programme to gain full control of the product and costs. We are confident in delivering further benefits from reset initiatives across
The Interim statement will be released on
|
Q120 £m |
Q119 £m |
YOY |
Q220 £m |
Q219 £m |
YOY |
H120 £m |
H119 £m |
YOY |
|
|
|
|
|
|
|
|
|
|
Group revenue |
148.7 |
165.5 |
(10.2%) |
219.1 |
249.1 |
(12.0%) |
367.8 |
414.6 |
(11.3%) |
|
|
|
|
|
|
|
|
|
|
Channel Revenue (1) |
|
|
|
|
|
|
|
|
|
Store |
76.5 |
88.9 |
(13.9%) |
80.8 |
89.2 |
(9.4%) |
157.3 |
178.1 |
(11.7%) |
E-commerce |
24.9 |
28.4 |
(12.3%) |
33.0 |
36.3 |
(9.1%) |
57.9 |
64.7 |
(10.5%) |
Wholesale |
47.3 |
48.2 |
(1.9%) |
105.3 |
123.6 |
(14.8%) |
152.6 |
171.8 |
(11.2%) |
|
|
|
|
|
|
|
|
|
|
Average retail space ('000's sq. ft) |
1,189 |
1,184 |
+0.4% |
1,185 |
1,188 |
(0.3%) |
1,187 |
1,186 |
+0.1% |
|
|
|
|
|
|
|
|
|
|
Notes:
(1) As of H219, E-commerce revenue is reported net of online returns processed in stores whereas previously those online returns had been reported in store revenues. Consequently, prior year Q1 and Q2 comparatives for E-commerce and stores have been adjusted by
(2) Full price sales mix relates to the proportion of retail sales made at RRP in full price stores and owned websites only.
(3) H119 and H120 revenue figures are stated pre any final IFRS15 Adjustments.
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+44 (0) 2071 928000 |
Pin: |
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