Superdry, like many other companies, has struggled to navigate the challenges brought on by the Covid-19 pandemic. The preliminary results for the year up to April 24 paint a clear picture of the impact on the brand. During this period, Superdry experienced a loss of 39% of its store days, as the pandemic coincided with two waves of the virus and lengthy lockdowns.

Unfortunately, the difficulties did not end there. In the period following the end of the financial year up to August 18, Superdry only saw a 1.9% increase in group revenue compared to the previous year. When compared to the same weeks in 2019, the company actually experienced a significant drop of 29.6% in group revenue.

While there has been some growth in store sales, with a 33.1% year-on-year increase, the decline becomes evident when compared to 2019, with a decrease of 36.9%. This growth was primarily driven by strong performance in the UK and US markets, but it was partially offset by closures and a decline in the EU market.

When looking at e-commerce, there was an 8.2% increase compared to 2019. However, compared to the exceptional growth experienced in 2020, there was a significant decrease of 34.4%. Superdry acknowledges that the current sales may seem more modest due to the previous year’s exceptional performance. Nevertheless, the return to full-price trading contributed to a 10.5% year-on-year increase in online gross margin.

On a positive note, wholesale revenues have shown signs of recovery with a 12.7% year-on-year increase. Superdry’s partners are gaining more confidence in the macroeconomic outlook, and the company expects this recovery to continue as partners sell-through carried-forward stock and markets return to normal.

Looking at the full year to April, group revenue fell by 21.1% to £556.1 million, and the gross margin dropped to 52.7% from 53.6%. However, both the adjusted loss before tax (£12.6 million) and the statutory loss before tax (£36.7 million) showed significant improvement compared to the previous year.

Despite the lingering uncertainty in the market, Superdry remains optimistic about its revenue recovery prospects for the current financial year (FY22). The company expects this recovery to be driven by gradually improving footfall in stores throughout the year and strong e-commerce growth compared to FY20. It also anticipates a modest but sustainable revenue recovery in the wholesale segment. Superdry aims to increase margins across all channels by shifting towards a full-price strategy and transitioning trade back into physical stores.

In conclusion, while Superdry continues to face challenges due to the Covid-19 pandemic, it maintains a positive outlook and is hopeful for a revenue recovery in the current year.

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