Superdry has renewed 55 store leases at an average reduction of 45% during the year to 30 April in its drive to improve store profitability.
The fashion retailer signed for an average commitment of three years on the renewals. It said it expected to achieve the same level of reduction across the remainder of its portfolio, which comprises 220 stores in total.
Rent payments to landlords during the period totalled £71.7m, up from £45.4m in the previous year. Superdry said the figure grew as a result of £15.7m rent deferrals, which have been paid. Those compared with £24m total deferrals last year.
At the end of the year, Superdry had £8.2m remaining rent deferrals that it expects to either settle in the next year or to “crystallise as permanent waivers”.
The business made 11 net store closures, compared with 10 in the previous year. Superdry said it did not “anticipate any material changes in the overall size of the store estate, but will continue to assess opportunities and necessary store closures as they arise”. Its store portfolio is spread across 12 countries.
The high street retailer is seeking to refinance an asset-backed lending facility of up to £70m, expiring at the end of January 2023. Along with the added challenges of the macroeconomic environment and high levels of inflation, the business said it remained “cautious about the near future”.
Total revenue increased by 9.6% to £609.6m from last year. The retailer is back in the black after posting adjusted profit before tax of £21.9m, up from a year-on-year loss of £12.6m.
However, it predicted that figure will fall to between £10m and £20m next year, as cost inflation puts pressure on its operating margins, exacerbated by the conflict in Ukraine.
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