REG-Superdry plc Superdry plc: FY24 Trading Statement

SuperdryAnnouncement

19/12/2023 07:15

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   Superdry plc (SDRY)
   Superdry plc: FY24 Trading Statement

   19-Dec-2023 / 07:00 GMT/BST

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   19 December 2023

                                  Superdry Plc

    

                              FY24 Trading Update

                                        

    Despite progress on our cost savings programme and inventory reduction,
       full year profitability expected to be impacted by well-documented
                        challenging trading environment.

                                        

   Superdry plc (“Superdry” or  the “Group”), today  issues a trading  update
   for FY24 covering the 26-week period to  28 October 2023 and an update  to
   current trading covering the 6-week period to 10 December 2023.

    

   Operational and Strategic Update:

     • Cost efficiency programme remains on  track with initial £35m of  cost
       savings expected to be realised  within the year. The Group  continues
       to assess opportunities to further reduce  the fixed cost base of  the
       business.
     • Inventory reduction programme on track as clearance of aged stock  has
       continued.
     • Further action taken to support the balance sheet with funds  received
       of £28.3m, net of transaction costs and taxation, for IP joint venture
       and disposal of assets in the South Asian region to partners  Reliance
       Brands.
     • Secondary lending facility  of up  to £25m agreed  with Hilco  Capital
       Limited, providing  the  Group with  improved  liquidity to  help  the
       implementation of the turnaround  plan and cost efficiency  programme.
       Cash management continues to be key focus for the Group.
     • Continue to reshape store estate with strategic closures and regearing
       of rental leases supported by  programmes to optimise store space  and
       improve profitability.
     • Notwithstanding the  near-term  challenges  faced by  the  Group,  the
       ongoing turnaround programme is designed to create an operating  model
       more suited to  the needs  of the  business over  the longer-term  and
       return Superdry to profitability.

   Trading Update:

     • H1 2024 was characterised by a challenging consumer retail market  and
       the abnormally mild autumn  resulted in a delayed  uptake of our  AW23
       collection:

          ◦ Retail was down 13.1% YoY, with Stores and Ecommerce impacted by
            the warmer weather, as well as a later start to our end-of-season
            summer sale. Ecommerce was also impacted by a profit-focused
            reduction in spend on digital marketing.
          ◦ Wholesale was down 41.1% YoY, which was, to some extent, expected
            due to the decision to exit our US wholesale operation, but was
            also driven by timing differences and the underperformance of the
            channel.

     • The more seasonal weather  seen recently in the  UK and Europe,  along
       with Superdry’s  longstanding  strength in  outerwear,  has led  to  a
       pick-up in sales. However, despite some more encouraging trends, sales
       in the 6  weeks since  the half-year  are still  down around  7% on  a
       like-for-like basis.
     • Despite progress  on strategic  priorities  and ongoing  programme  to
       recapitalise the balance  sheet, the external  environment has  proven
       challenging and  trading  performance  has  been  significantly  below
       management expectations. Profits for  the year are therefore  expected
       to reflect this weaker trading seen to date. A further update will  be
       provided at our interim results in January.

    

   Julian Dunkerton, Founder and Chief Executive Officer, said: 

    

   “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. Whilst  we have  seen modest  signs of  improvement through  the
   recent spell of 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 programme.”

    

   For further information:

    

   Superdry                                              
                                                         
                      
                                                        +44 (0) 1242 586747
   Shaun Wills       shaun.wills@superdry.com
                                                        +44 (0) 1242 586747
   Matthew Lee       investor.relations@superdry.com   
                                                         
    

   Media Enquiries                                       

    
   Tim Danaher       superdry@brunswickgroup.com        +44 (0) 207 4045959

    

    

    

   The information contained within this  announcement is deemed by  Superdry
   Plc to constitute inside information as stipulated under the Market  Abuse
   Regulation (EU) No. 596/2014 (as it  forms part of domestic law by  virtue
   of the  European Union  (Withdrawal)  Act 2018).  On publication  of  this
   announcement via a Regulatory Information Service, this inside information
   is now considered to be in the public domain. 

    

    

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           GB00B60BD277
   Category Code:  TST
   TIDM:           SDRY
   LEI Code:       213800GAQMT2WL7BW361
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   292698
   EQS News ID:    1799467


    
   End of Announcement EQS News Service

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