The UK division of fashion retailer Superdry has reported that its retail sales for the first half (H1) of fiscal 2024 (FY24) declined 13.1% year-on-year (YoY), compared to the same period in FY23.
The decline was driven by warmer weather which affected stores and e-commerce sales, the retailer has declared in an unscheduled trading update.
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Online sales were also impacted by a profit-focused reduction in spend on digital marketing.
During the 26 weeks to 28 October 2023, Superdry saw wholesale results drop by 41.1% YoY, driven by its decision to leave the US wholesale operation and by timing differences and the low performance of the channel.
In the six weeks to 10 December 2023, since the end of H1, sales continued to decline by 7% on a like-for-like basis.
Superdry said its trading had been “significantly below management expectations” and that this would be reflected in its annual profits.
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By GlobalDataThe retailer will provide additional updates in interim results scheduled to be released in January 2024.
Superdry founder and chief executive officer Julian Dunkerton stated: “The unseasonal weather through the early autumn led to a delayed uptake of our autumn/winter range and this impacted sales in the first half of the year.
“Whilst we have seen modest signs of improvement through the recent spell of colder weather, current trading has remained challenging, and this is reflected in the weaker-than-expected business performance. The operational progress we have made in the first half has been more encouraging with the IP [intellectual property] sale for the South Asian region and strong progress on our cost efficiency programme.”
In October 2023, Superdry entered an agreement with Reliance Brands Holding UK, a wholly owned subsidiary of Reliance Brands, to create a joint venture.
