Superdry sees sales rebound as customers switch back to shops

Fashion retailer Superdry has revealed soaring stores sales following the lifting of Covid restrictions, but a slump in online trade as customers return to high streets.

The chain said stores sales rose more than 200% year-on-year to £47.2 million in its fourth quarter to April 23.

The result was also significantly higher on a two-year comparison, up 22.9% compared with the same period in 2020 before the pandemic struck.

It saw online sales drop 21.5% year-on-year in the quarter due to the switch back to stores and as it cut back on promotions.

Over its full-year, store sales rose 59.8% to £224.5 million, but were still 21.8% lower on a two-year comparison as it said “footfall remains significantly below pre-Covid levels”.

Full-year online sales dropped 24%, though overall revenues lifted 8% to £600.7 million thanks to the better trading in shops.

Shares dropped 4% despite the sales rebound.

The figures come after Superdry recently revealed it will push through price hikes of around 2% in response to soaring costs, which comes on top of a decision to slash discount sales.

Superdry chief executive Julian Dunkerton said: “We are conscious of the cost-of-living pressures on consumers, meaning that now more than ever we must continue to deliver product that stands for what is important to them: quality, style and sustainability at great value.

“As we head into 2022-23 we remain cautious on the macroeconomic outlook and the impact of inflation but are confident that our strategy is positioning the brand for future success.”

Earlier this year, the group reported a swing to a pre-tax profit of £4 million in the six months to late October, from a near-£19 million loss a year earlier when shops were closed in lockdown.

Revenue dropped 1.9% in the first half though, despite the problems that shops were facing a year earlier.