Superdry Back in the Black by 2025: Cost Cuts Offset 23% Sales Dip

Superdry returns to black. The British fashion company, which exited the stock market in July last year after 15 years of trading on the British stock exchange, has closed its last full year by returning its income statement to black thanks to a cost-cutting strategy. The company has thus reversed the losses of a year ago, despite having reduced sales by more than 20% during the period.

Specifically, the group closed the period, which ended in April this year, with sales of 374.6 million pounds ($495.3 million), down 23.3% on the previous year. The company’s gross profit, meanwhile, fell to 218.2 million pounds ($288.5 million), compared with 268.5 million pounds ($355 million) a year earlier.

Despite the fall in the British icon’s sales, the year-end also saw it return to profit: if at the end of the previous year the company had lost 50.8 million pounds ($67.1 million), it has now closed the period with a gain of 33.3 million pounds ($44 million).

Superdry has cut costs by up to 130 million pounds in the year

By markets, Superdry concentrates most of its sales in the United Kingdom, up to 174.6 million pounds ($230.8 million), 19% less than in the previous year. In Europe, turnover fell even more, by 22% to 170.4 million pounds ($225.3 million), while in the rest of the world, Superdry sold products for 29.6 million ($39.1 million).

The company also shared sales by distribution channel, the main one being wholesale sales, with 219.9 million pounds ($290,7 million). Its own stores, on the other hand, generated a turnover of 175.2 million pounds ($231.6 million) for the American icon, while the Internet business generated sales of 109 million pounds ($144.1 million).

“Superdry has recorded a year of significant progress in operational terms and strategic realignment, achieving improved margins, a higher return on profitability and a restructuring of the business, all while the company continues to focus on its core business.The company explained in the document filed with the British registry, “Superdry has recorded a year of significant progress in operational terms and strategic realignment, achieving improved margins, a greater return to profitability and a restructuring, all while the company remains focused on full price sales and long-term growth”.

The group itself attributed the business improvement to the more than 130 million pounds ($171.8 million) saved in associated costs under “selling, general and administrative” (SG&A). “The second year of our restructuring plan - the company has explained with reference to the current financial year -; has started strong, with good results in key markets.“