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Q1 2021 -Online Sales doubling .
Buy, hold and accumulate, you will be well regarded from here.
Few Highlights for me is :
Strong Online Sales, especially women section.
Net Cash - 36 Million.
New Lease arrangements
Move towards sustainability - all stores getting renewable energy.
https://www.londonstockexchange.com/news-article/SDRY/final-results/14691895
Took back control of the Superdry brand in China, by agreeing to exit our joint venture agreement with Trendy International
· Created the AW20 product range as a key milestone in our brand reset, under our new design philosophy, which clearly targets our nine consumer types through four distinct style choices
Julian Dunkerton, Founder and Chief Executive Officer, said:
"Our priority throughout the pandemic has been the wellbeing of our colleagues and customers. As with all retailers, we have experienced significant disruption to our operations, and this has inevitably had an impact on our FY20 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, with FY21 first quarter revenues nearly doubling year-on-year. 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 re-invigorating 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."
Current trading
Trading continues to be disrupted, but has improved from the end of FY20 as social distancing measures are relaxed and consumer demand gradually returns. Adopting a flexible trading stance, we have discounted more in recent months compared to the prior year to help clear excess stock which accumulated during the temporary store closures resulting from Covid-19. As at today's date, ~95% of our store estate and ~98% of our franchises have now re-opened with social distancing in place.
Financial Highlights3
· Total revenue down 19.2% to £704.4m, reflecting a planned move away from persistent discounting and latterly the impact of Covid-19 on Q4, with our entire store estate closed from 22 March until year end
· Full price mix4 up +12pts year-on-year, driving an increase in gross margin rate of 90bps. This is more than offset by stock accounting and bad debt adjustments resulting in a net 110bp margin dilution
· Full year underlying loss before tax £(41.8)m includes the impact of provision and accounting charges of £19.7m for inventory adjustments and debtor recoverability, offset by a £16.7m net credit from utilisation of the onerous lease provision and reduced depreciation due to impairment
· Statutory loss before tax of £166.9m (2019: £(89.3)m), includes a store impairment charge of £136.8m
· The first time adoption of IFRS16 increased the Right of Use assets by £287.3m on transition; the store impairment due to the revised trading outlook reduces the value of these assets to £118.0m at year end
· As previously announced, the Board has decided not to propose a final dividend for FY20
· Strong closing net cash position of £36.7m (as at 16 September 2020 this is £49.2m, 2019: £4.9m), reflecting the decisive and significant actions taken to preserve cash
· Post year-end, completed the refinancing of our facilities to an Asset Backed Lending facility of up to £70m due to expire in January 2023, with amended covenants
Operational progress and response to Covid-19 challenges
· Improved the customer experience in store through increased stock and option density
· Ac celerated our sustainability focus, with 19% products in FY20 made from organic cotton, and 100% of owned stores and offices converted to renewable electricity
· Grew our social media following by 14% to 3.2m through improved content and frequency of engagement
· As planned, closed three of our four warehouses in the US to improve profitability, and maintained effective distribution operations with increased online volumes throughout the Covid-19 lockdown period
· Managed stock closely, rebalancing and rescheduling product orders, reducing future buy and ending FY20 with £158.7m of inventory, down £28.2m versus last year
· Reduction in FY20 capital expenditure when Covid-19 hit, approximately £7m lower versus our pre-Covid-19 investment plans
· Immediate reduction in overheads and discretionary spend, down £2m per month during lockdown
· Negotiated short term rent deferrals and accelerated lease renewals across our store estate, achieving on average 43% reductions on the 49 leases agreed to date