British Fashion Retailer Superdry Returns To Profit; Emphasizes Refinancing Needs

British fashion group Superdry ADR SEPGY has returned to profit in FY22.
The company reported FY22 an adjusted profit before tax of £21.9 million versus a loss of £(12.6) million in FY21.
Total revenue increased 9.6% to £609.6 million year-on-year, largely due to lapping enforced store closures and lifting of restrictions in the key markets.
The gross margin expanded 350 basis points year-on-year to 56.2%, and the inventory fell by 2.6 million Y/Y to 12.4 million units.
"We remain cautious about the near future as we continue to face a challenging macroeconomic environment, high levels of inflation, and the potential impact of these on consumer spending patterns," the company said in a statement.
Superdry added that increasing cost inflation, exacerbated by the conflict in Ukraine, is likely to put pressure on operating margins across each of its territories.
It also highlighted the importance of refinancing its Asset Backed Lending facility, which expires at the end of January 2023.
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