Fashion retailer Superdry has cautioned that ongoing uncertainty and disruption because of the Covid pandemic may affect performance as it posted a slump in sales and profits.

Superdry’s group sales slid 19.2% to £704.4m in the year to April 25, when statutory pre-tax profits fell 87% to £167m. On an underlying basis, the retailer made a loss of £42m versus a profit of £38m the previous year. 

The retailer said that “trading continues to be disrupted”, although it has improved since the year end. Superdry has, however, had to discount more over the past few months to shift excess stock that had built up during lockdown.

Superdry reported that store sales were down 48% in the 20 weeks to Septemer 12, compared with a decline of almost 86% in the five weeks to May 30. Online sales surged 55% and 112% over those respective periods. 

Superdry founder and chief executive Julain Dunkerton said: “As with all retailers, we have experienced significant disruption to our operations and this has inevitably had an impact on our results, but I’m proud of how everyone in the business has stepped up during this exceptional time.

“While our underlying profit has been impacted by trading performance during the year, including Covid-19-related store closures, I am particularly pleased by how strongly ecommerce has performed.

“This has been complemented by our increased digital consumer engagement, which helped drive a stronger womenswear mix than we have ever seen before. I’m pleased that we have delivered a good increase in the full-price mix, which is up 12pts year-on-year and has had a positive impact on gross margin.

“We are delivering on the reset of the business, despite the impacts of the pandemic. This has included reinvigorating the store design and layout, preparing for a relaunch of our website, and significantly increasing the number of options available both in store and online.

“Above all, I am very excited about our new AW20 collection, which will be almost fully ranged by the end of October and is the first full collection I’ve overseen since my return to the business last year. It reflects our new brand philosophy and a return to Superdry’s design-led roots, which encompass a commitment to sustainability.”

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