Superdry has announced its financial results for the fiscal year that ending 30 April 2022, reporting an adjusted profit before tax of £ 21.9 million, up from a loss of £ 12.6 million in the previous year.
Despite the profit increase, Superdry is cautious due to increased cost inflation and the worsening conflict in Ukraine, as operating margins are certain to come under pressure.
However, a Superdry spokesperson stated that this isn’t a profit warning, but simply an outlook for the next year.
Profits have been rising thanks to women’s apparel and recycled products. Womenswear accounted for 51 per cent of Superdry’s revenue, up from 41 per cent in October 2021. Organic and recycled products accounted for more than half of the sales in the 22 weeks up to October, up 11 percentage points year-on-year.
“All indicators point to our brand health moving in the right direction: our revenue, marketing, and sustainability messaging are all moving in the right direction,” said CEO and Founder Julian Dunkerton.
He also mentioned that Superdry will produce enough organic cotton to meet all of the company’s ‘cotton needs’, making it self-sufficient in the face of rising prices for the material.
“We’re converting farmers in India to organic practices, we’re buying their seeds, we’re helping them with that process,” he said, adding “We plan our production years in advance.”
He also indicated that the next focus is ‘wholesale’ which accounts for 37 per cent of Superdry’s annual sales.
