Superdry PLC (LSE:SDRY) returned to profit in its first half and said it’s confident it will meet expectations for full year 2022, despite the challenges of coronavirus (COVID-19) and rising inflation.
Profit before tax for the clothing retailer stood at £4mln in the six months to 23 October 2021, an improvement on the losses in the previous two years, with the group benefitting from foreign exchange movements.
Management aim to counter increased costs impacting the sector by cutting prices and limiting discounts, the trading statement said.
“While there remains uncertainty about the impact of Covid-19 and the macro-economic environment, I am increasingly confident in the accelerating momentum of our reset and the strengthening of the brand,” said chief executive Julian Dunkerton.
Superdry’s like-for-like (LFL) revenues for the six months up to 23 October declined by 1.9%, and almost 25% compared pre-pandemic levels with the company still reeling from COVID-19.
For the first 11 weeks of the second half, up to 8 January, LFL sales were up 19.6%, “a sign the company has started the second half of the year strongly,” though it was acknowledged that these numbers were boosted by the festive period.
Net debt stood at £3.9mln from a net cash position of £34.1mln a year earlier, but is ahead of its first half of 2020 performance of £9.3mln debt, “which is more reflective of our normalised working capital cycle.”
Shares in Superdry were up 5.6% in morning trading, changing hands at 252p