TIDMSDRY
RNS Number : 4418Y
Superdry PLC
09 May 2019
SuperdryPlc
("Superdry" or "the Company")
9 May 2019
Pre-Close Trading Statement
Trading performance continues to be weak; initiatives to
stabilise and improve performance underway
Superdry announces a trading update for the 13-week period from
27 January 2019 to 27 April 2019 ('Quarter 4').
Performance Highlights
- Global Brand revenue up 3.6% over full year
- Poor Wholesale and Ecommerce performance in Quarter 4, actions
to address this underperformance underway
- Improved own store performance in Quarter 4
- Full year underlying profit before tax likely to be below the range of market expectations
- Following management changes on 2 April, initial actions to
stabilise performance and improve the long-term prospects of the
Company already being implemented
Revenue(1,2)
GBPm Quarter 4 Second half Full Year
FY19 FY18 Growth FY19 FY18 Growth FY19 FY18 Growth
------ ------ ------- ------ ------ ------- -------- -------- -------
Global Brand Revenue 406.3 428.6 (5.2)% 885.9 883.5 0.3% 1,736.1 1,675.2 3.6%
------ ------ ------- ------ ------ ------- -------- -------- -------
Group Revenue 187.8 196.7 (4.5)% 457.1 470.0 (2.7)% 871.7 872.0 (0.0)%
------ ------ ------- ------ ------ ------- -------- -------- -------
Channel Revenue
------ ------ ------- ------ ------ ------- -------- -------- -------
Wholesale 89.7 98.9 (9.3)% 163.2 164.1 (0.5)% 335.0 323.4 3.6%
------ ------ ------- ------ ------ ------- -------- -------- -------
Ecommerce 29.3 30.5 (3.9)% 98.3 100.0 (1.7)% 163.7 161.2 1.6%
------ ------ ------- ------ ------ ------- -------- -------- -------
Store 68.8 67.3 2.2% 195.6 205.9 (5.0)% 373.0 387.4 (3.7)%
------ ------ ------- ------ ------ ------- -------- -------- -------
Average Retail
Space (000's sq.
ft.) 1,200 1,175 2.1% 1,200 1,173 2.3% 1,193 1,128 5.8%
------ ------ ------- ------ ------ ------- -------- -------- -------
-- Global Brand revenue(1) of GBP1,736.1m increased by 3.6% year-on-year.
-- Group revenue flat year-on-year (0.0%), but declined 4.5% in Quarter 4. Specifically:
o Wholesale revenue up 3.6% to GBP335.0m year-on-year, though
declining 9.3% in Quarter 4. The Quarter 4 decline was driven by
increased levels of returns, lower than anticipated in-season
orders and decisions not to ship to customers that had reached
their credit limits.
o Ecommerce revenue up 1.6% year-on-year to GBP163.7m but
Quarter 4 revenue down 3.9%. Performance was impacted by the
reduction of year-on-year discounting, including the removal of
planned promotional activity at the end of Quarter 4.
o Store performance improved in Quarter 4, growing 2.2% but down
3.7% to GBP373.0m year-on-year.
-- Comprehensive programme to deliver GBP50m+ gross cost savings by FY22 continuing.
-- Primarily as a result of the weak Wholesale and Ecommerce
performance, along with other measures to deliver the new
operational strategy, we now expect FY19 underlying profit before
tax to be lower than the current range(3) of market expectations. A
further detailed update will be provided at the full year results
announcement on 4 July 2019.
-- As a result of the store portfolio review announced by the
Company on 12 December 2018, the Company will make a non-cash
onerous lease and store impairment provision. Given the management
transition and the consequent need to update the Company's longer
term strategic plans, the review has not yet been finalised but
will have an impact that benefits both FY19 and subsequent years.
Further details will be provided at the full year results
announcement on 4 July 2019.
-- In the five weeks since the change of management on 2 April,
Interim Chief Executive Officer Julian Dunkerton has already
identified immediate opportunities to improve the efficiency and
performance of the business, and taken action to implement these
opportunities. Immediate actions have included:
o Increasing the number of options sold online with those
additional options generating full price sales.
o Repopulating selected flagship stores with a greater density
of stock.
o Reducing unnecessary promotional activity resulting in
enhanced margins and strengthening the brand.
o 500 new products to be introduced in the first 6 months.
A further update on strategic progress will be provided at the
full year results announcement on 4 July 2019.
Julian Dunkerton, Interim Chief Executive Officer, said:
"I am very excited about being back in the business. There's a
lot to do, but after five weeks, I am more confident than ever that
we can restore Superdry to being the design led business with
strong brand identity I know it can be. My first priority has been
to stabilise the situation, and all of us in the business are
putting all our energy into getting the product ranges right and
improving the Ecommerce proposition, which are two important steps
towards addressing Superdry's recent weak performance. The impact
of the changes we are making will take time to come through in the
numbers but I'm confident we are heading in the right
direction."
Peter Williams, Chairman, said:
"I'm delighted to have joined Superdry. This is a fantastic
British brand, and I firmly believe that with the plans Julian is
putting in place it will be a great success story once again.
Today's statement shows the scale of the challenge ahead of us. The
Company's financial performance won't be turned around overnight,
but we know what we need to do, and we are wasting no time in
addressing the challenges which the business faces. This includes
ensuring the correct corporate governance structure and Board is in
place to guide the business going forward. I believe that we are
doing the right things to get the business back on top form and
delivering long-term sustainable growth for shareholders."
For further information:
Superdry
Adam Smith adamj.smith@superdry.com +44 (0) 1242 586747
Jefferies
Ed Matthews ematthews1@jefferies.com +44 (0) 20 7029 8000
James Thomlinson jthomlinson@jefferies.com +44 (0) 20 7029
8000
Media enquiries
Tim Danaher, Imran Jina superdry@brunswickgroup.com +44 (0) 207 404 5959
Reporting calendar confirmation
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: 0800 376 7922
Pin: 1593729
--------------
Supporting notes:
1. 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.
2. Foreign currency sales are translated at the average rate for
the month in which they were made.
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 and Q4
comparatives for Ecommerce and stores have been adjusted by GBP1.5m
and GBP0.4m respectively in FY18 to reflect this alignment of
returns to the channel of original purchase.
Quarter 4 18 figures stated for the comparable 13-week period
(previously reported for the 16 weeks to 7 January 2018). All FY18
and FY19 figures are presented pre-IFRS15 adjustment.
3. 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 range of underlying profit before tax forecasts as at
7 May 2019, of which the Board is aware, is GBP54.1m to
GBP59.4m.
4. Retail space analysis:
Closing figures FY18 FY19 H1 FY19 H2
Sq.Ft. Stores Sq.Ft. Stores Sq.Ft. Stores
------- ------- ------- ------- ------- -------
Owned Stores
------- ------- ------- ------- ------- -------
UK & ROI 581 102 591 104 595 105
------- ------- ------- ------- ------- -------
EU 470 114 477 114 476 113
------- ------- ------- ------- ------- -------
North America 128 30 130 31 126 30
------- ------- ------- ------- ------- -------
Group 1,179 246 1,198 249 1,197 248
------- ------- ------- ------- ------- -------
Franchised Stores 394 427 464
------- ------- ------- ------- ------- -------
License Stores 18 19 22
------- ------- ------- ------- ------- -------
Branded Stores 658 695 734
------- ------- ------- ------- ------- -------
Notes to Editors
The Superdry brand is 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
63 countries, including our development markets of North America
and China, and have almost 5,000 colleagues globally.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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