Fashion retailer Superdry has reported revenue of £219.8m ($279.1m) in the first half of fiscal 2024 (H1 FY24), a 23.5% decrease compared to the previous year’s £287.2m.
The fashion retailer attributes the fall to a tough consumer retail market, unseasonal weather conditions and a lacklustre performance in its wholesale segment.
Despite these challenges, the company posted a statutory profit before tax of £3.3m, an improvement from the £17.7m loss recorded in the first half of FY 2023.
The profit was largely due to the sale of intellectual property (IP) in the Asia-Pacific region, although this was somewhat offset by a non-cash impairment charge of £10.2m.
The softer revenue performance has adversely affected Superdry’s underlying profitability, resulting in an adjusted loss before tax of £25.3m in H1 FY24, compared to a £13.6m loss in the same period of the previous year.
Its adjusted basic loss per share also widened to 26.5p over the period, a shift of 136.6% from a loss per share of 11.2p in the same period a year previously.
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Superdry has been proactive in rightsizing its operating cost base, with anticipated savings of more than £40m within the current financial year, surpassing an initial target of £35m.
In the first half of FY 2024, the retailer has already seen savings of more than £20m as it continues to focus on reducing costs.
To further strengthen its balance sheet, Superdry has taken additional steps at the end of H1 2024, including receiving funds from an IP joint venture and the disposal of assets in the South Asian region, which resulted in a gain of £28.3m.
Superdry founder and chief executive officer Julian Dunkerton stated: “This has clearly been a difficult period for Superdry. A challenging consumer retail market, set against a backdrop of macroeconomic uncertainty and some remarkably unseasonal weather conditions, have all combined to weaken the financial performance of the group.
“Despite the near-term difficulties, we have made significant operational strides over the half year as part of our ongoing turnaround. Our cost savings programme remains on track and our inventory reduction programme is progressing well.”
“Our efforts continue to focus on rightsizing the cost base and creating an operating model suitable for the needs of the organisation over the longer term. Christmas trading proved challenging, and we do not expect market conditions to get any easier in the near term. However, I firmly believe we are taking the right steps for the business and the brand, to return Superdry to profitability.”