Against a bleak background of stalling sales from major high street players such as Next and Primark, SuperGroup has posted a stellar set of full-year results.
Strong growth was achieved across both its retail and wholesale divisions – 24.5 per cent and 13.7 per cent respectively – contributing to total group revenue of £589.5 million.
There was no mention of poor weather affecting fourth quarter retail sales, which were up by 29.9 per cent on a top line basis and by 15.4 per cent on a like-for-like basis, highlighting how Superdry’s transeasonal ranges are more aligned with the manner in which consumers shop than many other retailers. Consumers’ shopping habits are changing, and seasonal product drops are increasingly irrelevant when shoppers prefer to buy across seasons – a lesson several clothing retailers would do well to learn.
No doubt, the net 24 stores the retailer opened during the year were major contributors to its full-year results, but robust like-for-like growth indicates consumer demand remains strong for Superdry’s distinctive product. 2015 was a year of product development and range extensions for the retailer, with new sports and activewear ranges added, a highly-publicised collaboration with actor Idris Elba, and greater focus on womenswear – all initiatives which have driven spend from existing shoppers while recruiting new ones.
On a slightly less upbeat note, founder James Holder has resigned as brand & design director of the business. However, he will be creating and working exclusively on SuperDesign Lab – a design consultancy where he intends to focus on innovation to support Superdry. It’s a well-thought out move especially as Verdict Retail data shows that consumers are increasingly demanding value for money.
Incorporating fabric and technology innovation into key product ranges such as sports and activewear, will help Superdry provide more value to existing and prospective customers – thereby positioning it well for long-term growth.
- Nivindya Sharma is an analyst with Verdict Retail.
