Superdry has emerged as one of the winners from the Brexit vote, as the weakness of the pound boosted the clothing brand’s performance overseas.
SuperGroup, the owner of Superdry, said sales had jumped 27% to £750.6m in the past year, with currency moves behind about a third of the increase.
The pound has fallen by about 12% against the US dollar since Britain’s vote to leave the EU last June. But this has been a boon for Superdry, which rings up 60% of its sales overseas, creating a large natural currency hedge.
Superdry, best known for its logo-bearing hooded tops, jogging bottoms and checked shirts, has been enjoying a purple patch thanks to expansion overseas and a high-profile collaboration with the actor Idris Elba.
The growth was particularly impressive at the brand’s wholesale arm, which includes its 319 franchise outlets, where sales jumped 42.9% to nearly £250m. Retail sales rose 20.6% to £501.6m.
Despite the upbeat picture, the shares fell almost 5% as the management team, led by chief executive Euan Sutherland, juggles higher sourcing costs (in common with other retailers, SuperGroup sources its clothing in dollars) and the runaway growth of its wholesale business, which has lower profit margins than retail.
As a result, the sales surge did not shift the dial on annual profits, with Sutherland confirming they would be in line with existing City forecasts of between £86m and £87m.
