Superdry stock delayed by up to six weeks during supply disruption
But the fashion retailer said it now believes the worst of the problem is behind it.
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Your support makes all the difference.Superdry has suffered delays of up to six weeks in dispatching its wholesale stock but said it believes the worst of the current supply disruption is behind it.
The fashion retailer told the PA news agency that September stock was impacted by supply chain issues affecting its autumn ranges.
However, it hailed a strong October for the brand and said it is “well positioned and well stocked” for Christmas demand.
Julian Dunkerton founder and chief executive of the brand, told PA: “The delays we have seen will not affect Christmas for us.
“We have already absorbed most of the impact of that and now we have had our autumn stock out across October, we have just been so pleased with the response.
“In October, we have like-for-like growth of about 7.9% against pre-pandemic levels so it puts us is a fantastic position for Christmas.”
Superdry said the impact of logistics issues was greatest on its wholesale business, which saw delays of between four and six weeks.
It came as the company reported a 2.4% fall in revenues for the half-year to October, compared with the same period last year.
Mr Dunkerton hailed the performance as showing “strong progress” for the company’s brand reset, with reduced levels of discounting helping to strengthen margins.
“Our focus on full-price sales continues to deliver improvements in gross margin and I am pleased that we are ending the half with 10% fewer inventory units than last year,” he said.
“We are encouraged by the performance this strategy is starting to deliver, which gives me further confidence in the full-year outlook.”
The group also reaffirmed its commitment to stores, despite the permanent closure of 15 sites last year, as it reported 21.7% year-on-year growth in shop revenues.
Nevertheless, Mr Dunkerton said the Autumn Budget was “disappointing” for the retail sector.
“It was a disappointing Budget and I just hope Government can get their heads around this,” he told PA.
“The reality is that taxes will need to keep rising but there has to be shift of the balance from physical stores.
“That could mean an extra online sales tax but there certainly needs to be more support when it comes to the rates facing physical shops.”