10th May 2018 10:29
LONDON (Alliance News) - Superdry PLC on Wednesday reported 16% growth in annual revenue driven by strong performance in the wholesale and ecommerce divisions and said that its expects a double-digit adjusted profit growth for the period.
For the year ended April 28, the company's group revenue totaled GBP872 million, up from GBP752 million. Wholesale revenue grew by 29.6% to GBP323 million, while Ecommerce revenue climbed 25.8% to GBP163 million.
Store revenue, however, grew around 3.4% to GBP386 million from GBP373 million, with the company defining them "under pressure".
The company recorded 12.4% growth in fourth quarter revenue to GBP254.4 million from GBP226.4 million. Wholesale and Ecommerce recorded 27.1% and 18.2% growth, respectively. Store revenue fell 6% in the final quarter.
Superdry said it continued to benefit from the "relative weakness" of the sterling and the foreign exchange impact was 60 basis points in the fourth quarter.
The clothing retailer expects underlying pretax profit for 2018 financial year to be between GBP96.5 million and GBP97.5 million. Statutory profit is expected to be affected by a non-cash impairment charge of GBP7.2 million in respect of the company's flagship store in Berlin.
Gross margins for the 2018 financial year are anticipated to fall year-on-year by around 200 basis points due to dilutive impact of the strong growth within Wholesale channel and new investments.
Superdry recorded underlying pretax profit of GBP87.0 million and statutory pretax profit of GBP84.8 million in 2017 financial year.
For 2019 financial year, the UK-listed company expects to generate high single-digit statutory revenue growth, led by double-digit growth in Wholesale and Ecommerce business.
The company entered eight new markets and expanded retail space by 14.8% opening 75 new franchise stores in 33 countries in the 2018 financial year.
Superdry shares were down 16% at 1,298.0 pence in morning trade.
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