Superdry PLC (LSE:SDRY) kept a very optimistic outlook for this winter’s trading even though half-year sales were lower compared to both last and the previous year.
Founder and chief executive Julian Dunkerton said the clothing retailer is recovering well from the COVID-19 pandemic and the Autumn/Winter 2021 started strongly.
“Once the new range landed and we began trading against a comparable full price period, we saw an acceleration into positive two-year retail like-for-like growth,” he said.
“Our focus on full-price sales continues to deliver improvements in gross margin and I am pleased that we are ending the half with 10% fewer inventory units than last year. We are encouraged by the performance this strategy is starting to deliver, which gives me further confidence in the full-year outlook.”
The faux-Japanese designer is opening a new flagship store in Oxford Street next week, deemed as a “big statement about the future of the brand”.
It will sell the broadest range of sustainable products in Superdry’s portfolio as well as become a London base for the wholesale showroom and the influencer programme.
In the half-year to 23 October, group revenue dropped 2% compared to last year and 25% compared to two years ago.
“The triumphalist tone of the Superdry pre-close update… with its talk of an encouraging start to the autumn/winter season and a good recovery from the pandemic, is hard to square with the fact that sales are down on last year,” said independent analyst Nick Bubb.
Shares dipped 0.5% to 295.34p on Thursday morning.