RNS Number : 3069P
Superdry PLC
07 February 2019
 

SuperdryPlc

("Superdry" or "the Company")

 

 

7 February 2019

 

Q3 Trading Statement

 

Superdry in line with market expectations1 as transformation plan gathers pace

 

Superdry Plc ('Superdry'), the Global Digital Brand, today announces a trading update for the 13-week period from 28 October 2018 to 26 January 2019.

 

Performance Highlights

 

Revenue2,3


13 weeks to 26 January 2019 ('Q3 19')

£m

13 weeks to 27 January 2018 ('Q3 18')

£m

 

Growth

Global Brand revenue2

479.6

454.9

5.4%





Group revenue

269.3

273.3

(1.5%)





Channel revenue




Wholesale

73.5

65.2

12.7%

Ecommerce

69.0

69.5

(0.7%)

Store

126.8

138.6

(8.5%)





Average retail space ('000's sq. ft.)

1,201

1,170

2.6%

 

·      Global Brand revenue2 of £479.6m increased by 5.4% year on year, predominantly driven by strong Wholesale performance in the quarter

·      Group revenue down 1.5% year on year, impacted by subdued store and Ecommerce sales driven by ongoing legacy product issues and continued unseasonably warm weather throughout the quarter

·      Wholesale revenue up 12.7% to £73.5m (Q3 18: £65.2m) driven by forward order despatches, with continued strong full price growth in the US

·      Ecommerce performance further impacted by a lower number of owned site promotions in some territories

·      Comprehensive programme to deliver £50m gross cost savings by FY22 gathering pace  

·      Executive team strengthened by appointments of Phil Dickinson as Creative Director and Lucy Maitland-Walker as Merchandising Director who both joined in January

 

Transformation update

 

As outlined on 12 December 2018, the comprehensive transformation programme has been intensified in response to the challenges faced. This programme builds on the underlying strengths of the brand and the operational capability which has been established over the last four years. A full update will be provided on the areas below at a Capital Markets Event planned for late March 2019:

 

·      The product diversification and innovation programme launched in summer 2018 has continued at pace. The early results of the programme will be seen in the autumn/winter collection for 2019 and in the launch of Kidswear, with further impact coming through with the launch of the spring/summer ranges for 2020;

 

·      The programme of work to evolve the brand is underway, driving improvements in our brand architecture which can be flowed through product, stores and online and through our relationships with Wholesale and franchise partners;

 

·      The work needed to deliver the efficiency programme announced on 12 December 2018 (targeting gross costs savings of at least £50m by FY22) kicked off before Christmas and has gained pace in the first few weeks of the New Year.

 

Commenting on Superdry's performance Euan Sutherland, Chief Executive Officer, 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. 

 

"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."

 

For further information:

 

Superdry

Ed Barker 44 (0) 1242 586747

Chief Financial Officer ed.barker@superdry.com

 

Adam Smith 44 (0) 1242 588187

Head of Investor Relations adamj.smith@superdry.com

 

Susanna Voyle 44 (0) 01242 586747 

Communications Director susanna.voyle@superdry.com

 

Reporting calendar confirmation

 

Full year pre-close trading statement

9 May 2019

Full year results announcement

4 July 2019

 

Conference call

Superdry will be a hosting a conference call for analyst and institutional investors at 08:30 hours today. A recording of the conference call will be available on www.corporate.superdry.com shortly afterwards.

 

Dial in:


UK Toll Number:

44 3333 000 804

UK Toll-Free Number:

0800 358 9473

 

Pin:

36735538#

 

Supporting notes

1.   The Board considers market expectations for the financial year ending 27 April 2019 are best defined by taking the range of forecasts published by analysts who consistently follow the Company.  The consensus of underlying profit before tax forecasts as at 4 February 2019, of which the Board is aware and which have been published on the Company's corporate website, is £58.4m with a range of £54.3m to £63.0m.

Link to consensus: http://corporate.superdry.com/investors/shareholder-information/analyst-consensus/

 

2.   Global Brand revenue represents the equivalent value of the Group revenue at the prices paid by customers. It is calculated by uplifting all revenues by applicable sales tax rates and uplifting revenues within our Wholesale channel by a factor representing the applicable mark up from wholesale to consumer prices. Global Brand revenue stated including China and sales from licenced territories and product categories. 

3.   Foreign currency sales are translated at the average rate for the month in which they were made.

4.   The trading comparatives for each quarter of FY 19 are detailed below (unaudited):

 


Q3 19

£m

Q3 18

£m^

Q3 19 vs Q3 18 YOY

Q3 18 vs Q3 17 YOY

YTD 19

£m

YTD 18

£m

YOY

Global Brand revenue (exc. China)

468.0

447.4

4.6%

13.2%

1,299.8

1,229.0

5.8%

Global Brand revenue (inc. China)

479.6

454.9

5.4%

14.3%

1,329.8

1,246.6

6.7%









Group revenue

269.3

273.3

(1.5%)

11.7%

684.0

675.3

1.3%









Channel revenue








Wholesale

73.5

65.2

12.7%

20.5%

245.3

224.5

9.3%

Ecommerce

69.0

69.5*

(0.7%)

23.2%

133.4

130.0

2.6%

Store

126.8

138.6*

(8.5%)

3.2%

305.3

320.8

(4.8)%









Average retail space ('000's sq. ft.)

1,201

1,170

2.6%

14.1%

1,191

1,113

7.0%

 

 

*As of H2 19, Ecommerce revenue is reported net of online returns processed in stores whereas previously those online returns had been reported in store revenues.  Consequently, prior year Q3 comparatives for Ecommerce and stores have been adjusted by £1.5m in FY18 to reflect this  alignment of returns to the channel of original purchase.

 

^Q3 18 and Q3 17 figures stated for the comparable 13 week period (previously reported for the 10 weeks to 6 Jan)

  

5.   'Gross cost savings' represent savings in Superdry's selling, general and administrative costs (which totalled £429.4m in FY18).  Net cost savings, after allowing for one-off costs and any lost contribution as a result of store closure not otherwise captured by channel shift, will be lower.

 

 

 

Notes to Editors

Superdry is a Global Digital Brand, obsessed with design, quality and fit and committed to relentless innovation. We design affordable, premium quality clothing, accessories and footwear which are sold around the world. We have a unique purpose to help our consumers feel amazing through wearing our clothes. We have a clear strategy for delivering continued growth via a disruptive multi-channel approach combining Ecommerce, Wholesale and physical stores. We operate in 61 countries, including our development markets of North America and China, and have over 5,000 colleagues globally.

 

Phil Dickinson has enjoyed a 28-year career as a leading creative. He joined Superdry from Some Ideas, a design agency he set up after holding a number of senior roles at Nike. His achievements at Nike included spear-heading the 2007 push into football, heading the wider sportswear category and leading the successful turnaround of Umbro.

 

Lucy Maitland-Walker has more than 20 years' experience as an international buying and merchandising director. Her previous experience includes senior roles with Triumph, White Stuff, Mexx and Nike.

 

Cautionary statement 

This announcement contains certain forward-looking statements with respect to the financial condition and operational results of Superdry Plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Superdry Plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for this announcement on behalf of Superdry is Simon Callander, Group General Counsel and Company Secretary of Superdry.

 

 

 

 


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