Superdry PLC (LSE:SDRY) share traded lower despite it reporting a solid recovery for the past year, with revenue rising in the fourth-quarter revenue as an increase in full-price sales offset an online decline.
Group revenue at the clothing brand rose 8% to £600.7ml for the full year to April 23, helped by revenue for the fourth quarter jumping 17% to £159.7mln.
The London-listed company's store revenue recovered, up 59.8% year-on-year, as closures and restrictions were lifted in key markets, though it said footfall remained significantly below pre-Covid levels.
Ecommerce was down 24% for the full fiscal year to £153.4mln, and down 21% for the fourth quarter to £38.2mln, which it said reflected a shift back to physical trading channels and lower promotional activity, in line with its strategy of focusing on full-price sales.
Full-price sales rose 26% year on year for the year as retail gross margin improved 590 basis points.
"Despite the ongoing tough trading conditions and turmoil in the market, our focus on full price trading will deliver a strong gross margin improvement for FY22," said chief executive Julian Dunkerton.
"As we head into FY23 we remain cautious on the macroeconomic outlook and the impact of inflation but are confident that our strategy is positioning the brand for future success."
Shares of the company were trading down 5% to 149p by mid-morning .
Broker Peel Hunt said revenues were 2% below its forecast, noting the UK market has performed more strongly, with the slower recovery from Covid-19 in Europe, and in particular Germany, "severely impacting the early part of the quarter and still representing a drag on footfall today".
For the new year, analysts said they "continue to take a cautious view on the consumer backdrop and wider inflationary pressures, and reduce our sales growth and margin assumptions, taking PBT from £22.6m to £18.5m, reflecting our sector stance rather than specific guidance".