7th Feb 2019 07:56
LONDON (Alliance News) - Superdry PLC on Thursday reported a fall in third quarter revenue, hurt by a subdued performance in store sales and e-commerce.
For the 13 weeks to January 26, the high street fashion retailer reported revenue of GBP269.3 million, down 1.5% from GBP273.3 million in the comparative period a year ago.
The company blamed ongoing legacy product issues and the continued "unseasonably warm weather" throughout the quarter for the revenue drop.
E-commerce sales dipped 0.7% to GBP69.0 million from GBP69.5 million, while Store sales slumped 8.5% to GBP126.8 million from GBP138.6 million. This was partially mitigated by a strong performance in Wholesale sales, up 13% year-on-year to GBP73.5 million from GBP65.2 million.
Meanwhile, Global Brand revenue, an adjusted performance metric which represents the equivalent value of group revenue at the values paid by consumers, increased 5.4% to GBP479.6 million from GBP454.9 million.
Chief Executive Officer Euan Sutherland said: "Superdry's performance has remained subdued during quarter three. We continued to be impacted by the ongoing product mix and relevance issues we have previously highlighted and by the lack, until the end of quarter three and the start of quarter four, of any prolonged period of cold weather in our key markets."
He added: "We are pleased with the early progress being made with our transformation programme, designed to reset the business and deliver a return to higher levels of growth and profitability."
The retailer said it intensified its transformation programme in light of the challenges faced. It plans to deliver GBP50 million of cost savings by 2020.
The programme includes product diversification, shifting away from winter clothing and jackets, and the development of new Wholesale and franchise partnerships.
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