Superdry PLC (LSE:SDRY) swung to a profit in its full-year results on the back of more full-price sales and strong strategic progress.
It returned to the black with adjusted profit before tax of £21.9mln in the 53-week period to 30 April 2022, compared with a loss of £12.6mln in the prior year.
Total sales, meanwhile, jumped 9.6% to £609.6mln year-on-year, largely due to lapping enforced store closures and lifting restrictions in many of its key markets.
Gross margin jumped 350 basis points year-on-year to 56.2%, reflecting Superdry’s full-price strategy, the fashion retailer said in its earnings statement.
It noted that 47% of product volume bought in the financial year was sustainably sourced, up 14 percentage points from last year.
Superdry also enhanced its online opportunity and offering, combining all 21 of its branded websites into one new microservices platform.
Julian Dunkerton, chief executive, commented: “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.
“I’m proud of the strides our team has made, delivering great products while also making a step-change in our social and digital capabilities and real progress towards our sustainability objectives.”
The company said it made an encouraging start to full-year 2023, especially in autumn and winter trading. For the 22-week period to 1 October, revenue increased 7% when compared with the same period in the prior year.
Despite the strong start to FY23, Superdry remained cautious about its performance in the future as it battles with a challenging macroeconomic environment driven by high inflation.
Consumer confidence, in times of downturn, tends to sink as households and people watch their spending habits and mostly buy what is absolutely necessary.
Its shares catapulted 13% higher to 115.4p on the back of the results.