REG-Superdry plc Superdry plc: Half-year Pre-close Trading Statement

SuperdryAnnouncement

22/12/2022 14:45

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   Superdry plc (SDRY)
   Superdry plc: Half-year Pre-close Trading Statement

   22-Dec-2022 / 14:30 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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                                  SuperdryPlc

                         (“Superdry” or “the Company”)

   22 December 2022

                          Pre-close Trading Statement

    Trading update covering the 26-week period (‘H1 23’) to 29 October 2022

                                        

              Positive start to Autumn/Winter 2022 (“AW22”) season

             New financing facility agreed, and auditors appointed

    

     • Group  revenue   increased  3.6%   year-on-year,  driven   by   strong
       performance in owned stores.
     • Store revenue increased  14.4% year-on-year  as collections  resonated
       well with customers.
     • Ecommerce revenue increased  1.7% year-on-year as  traffic moved  from
       online and back to stores, with jacket sales and AW22 performance from
       third party sites being the key drivers of growth.
     • Wholesale revenue decreased 5.2% following low levels of dispatches in
       October which are expected to partially reverse in the second half.
     • Margin dilution in excess of  200bps, primarily from Wholesale  intake
       margin pressure.
     • Financing secured with a new three-year facility, expiring in December
       2025.
     • As of 20 December the Company had  circa £13m of net debt, a  decrease
       of over £25m since 1 October.
     • Following a thorough  process, the Board  has appointed new  auditors,
       RSM UK Audit LLP, for FY23 onwards. 

                  
                 H1 YoY Change
   Group Revenue          3.6%
   Of which:                  
   Stores                14.4%
   Ecommerce              1.7%
   Total Retail           9.6%
   Wholesale            (5.2)%

    

   Julian Dunkerton, Founder and Chief Executive Officer, said:

   “I’m pleased with the performance of the business over the half. It’s been
   well documented that  conditions are extremely  challenging which  weren’t
   helped by  the unseasonably  warm weather  in October  and into  November.
   However, by combining great product with affordable prices, we managed  to
   grow sales in  the first half.  Our AW22 collection  has been really  well
   received by customers, especially our jacket range and party dresses,  and
   it’s great to see store sales  recovering well. I am also encouraged  with
   how we have started the second half, which has seen our biggest ever  week
   for Ecommerce orders driven by a  return to record levels of jacket  sales
   over the Black Friday period and good momentum through the recent spell of
   colder weather.

    

   That said we are  under no illusions that  consumer confidence is  fragile
   and that the picture is unlikely to change quickly. We are very pleased to
   have completed  our  refinancing and  this,  combined with  the  continued
   strengthening of our  brand and  product, means  the business  is in  good
   shape as we trade through our important Christmas trading period.”

    

   Financing Facility

   Superdry is pleased to announce that it has agreed a loan facility of up
   to £80m, including a £30m term loan, for three years with an option to
   extend for one further year, with specialist lender Bantry Bay Capital
   Limited1.  This will replace the existing up to £70m Asset Based Lending
   Facility which was due to expire at the end of January 2023. Given market
   conditions, the interest rate will be higher than our previous agreement
   at SONIA2 + 7.5% on the drawn element. The revised facility is
   operationally less complex to manage and covenant light, giving us the
   necessary flexibility to navigate the current challenging macro-economic
   environment and continue to focus on driving our brand strategy forward.

    

   Notes

    1. Bantry Bay Capital Limited is a specialist lender which provides
       supportive debt capital solutions to corporates in periods of growth
       and other change. Bantry Bay focuses on asset-based financings for
       private and publicly listed companies across a wide array of
       industries, working with clients to provide the foundations for
       stability and growth.
    2. The Sterling Overnight Interbank Average Rate (SONIA) is the effective
       overnight interest rate  paid by banks  for unsecured transactions  in
       the British sterling market.

    

   For further information:

   Superdry:

   Shaun Wills                   shaun.wills@superdry.com        +44 (0) 1242
                                                                 586747
   Chris  MacDonald   (maternity investor.relations@superdry.com +44 (0) 1242
   cover)                                                        586747

    

   Peel Hunt:      +44 (0) 2074 188900
   George Sellar    
   Michael Burke
                    
    
   Liberum:        +44 (0) 2031 002000
   John Fishley     

    

   Media enquiries

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

    

   Notes to Editors

   Our mission is “To  be the #1 sustainable  style destination” through  our
   distinct  collections,  defined  by  consumer  style  choices.  We  design
   affordable, premium quality clothing,  accessories and footwear which  are
   sold around the world. We have  a clear strategy for delivering  continued
   growth via  a  multi-channel  approach combining  Stores,  Ecommerce,  and
   Wholesale.

    

   Superdry has 219 physical stores and around 450 franchisees and licensees.
   We operate in over 50 countries and have over 4,100 colleagues globally.

    

   Cautionary Statement

   This announcement contains certain forward-looking statements with respect
   to the financial condition and operational results of Superdry Plc.  These
   statements  and  forecasts  involve  risk,  uncertainty,  and  assumptions
   because they  relate to  events and  depend upon  circumstances that  will
   occur in the future. There are a number of factors that could cause actual
   results or  developments  to differ  materially  from those  expressed  or
   implied  by  these   forward-looking  statements.  These   forward-looking
   statements are made only as at  the date of this announcement. Nothing  in
   this announcement  should be  construed as  a profit  forecast. Except  as
   required  by  law,  Superdry   Plc  has  no   obligation  to  update   the
   forward-looking statements or to correct any inaccuracies therein.

    

   This announcement contains inside information for the purposes of  Article
   7 of the  Market Abuse Regulation  (EU) 596/2014  as it forms  part of  UK
   domestic law  by  virtue  of  the European  Union  (Withdrawal)  Act  2018
   ("MAR").

    

    

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   ISIN:          GB00B60BD277
   Category Code: TST
   TIDM:          SDRY
   LEI Code:      213800GAQMT2WL7BW361
   Sequence No.:  210797
   EQS News ID:   1520373


    
   End of Announcement EQS News Service

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