Superdry ‘cautious’ despite swinging to profit

Retailer Superdry said it is cautious about the future as spiralling costs and the weight that shoppers are under has added to uncertainty across the economy.

The business said it has still not recovered to pre-pandemic revenue levels and does not expected to do so during the current financial year.

In the year to the end of April, revenue rose nearly 10%, hitting £610 million, while the business swung to a £17.9 million pre-tax profit, from a loss of £36.7 million a year earlier.

“These are exceptional times for retail and for the economy more generally, and like all brands we’re having to work harder than ever to drive performance,” said chief executive Julian Dunkerton.

“Against that backdrop, I am pleased that we managed to return the business to full-year profit, driven by increased full-price sales, whilst also making strong strategic progress.

“I’m proud of the strides our team has made, delivering great product while also making a step-change in our social and digital capabilities and real progress towards our sustainability objectives.”

It was a year of online outreach for the business, which has gained more than 450,000 followers on its TikTok account, opened just 12 months ago.

The business also said it had grown its “army” of online influencers from 2,000 to 2,349 by the end of the financial year.

However, the company’s online sales, which soared during the pandemic, are giving some of their ground back to the high street shops, although footfall in stores is not back to pre-pandemic levels, the business said.

It also warned of tough times ahead, as costs soar for customers and businesses alike.

“We remain cautious about the near future as we continue to face a challenging macroeconomic environment, high levels of inflation, and the potential impact of these on consumer spending patterns,” the business said.

“We expect revenues to continue to recover throughout the 2023 financial year, although still not reaching pre-pandemic levels.”

Adjusted pre-tax profit is expected to reach between £10 million and £20 million in the financial year, compared to £21.9 million in the year ended this April.