Superdry strikes a cautious note as it warns spiralling costs could hit profits

Superdry made a cautious comment yesterday when it warned that rising costs could weigh on profits.

The clothing company also noted that sales have not yet returned to pre-pandemic levels, nor did it expect to do so during the current fiscal year.

The dismal assessment came despite Superdry fluctuating to a profit of £21.9 million for the year to the end of April, from a loss of £12.6 million 12 months earlier.

Turnover rose 9.6 per cent to £609.6 million as shoppers returned to shops after the lockdowns ended.

Online sales fell 23 percent as customers became less dependent on online shopping, although this was offset by the strong increase in store revenues.

Shares were up 10.9 percent or 11.2p to 113.6p.

Despite the gains, Superdry remained ‘cautious’ as rising costs to consumers and businesses, exacerbated by the war in Ukraine, were likely to ‘pressurize’ profit margins.

Chief executive Julian Dunkerton said: “These are exceptional times for retail and for the economy in general, and like all brands, we need to work harder than ever to improve performance.”