Superdry PLC

Superdry — FY2021 Earnings Presentation

43 slides from Superdry's earnings presentation, Sep 16, 2021

  1. Slide 1: FY21 Full Year Results

    SUPERDRY ® BMRB FY21 Full Year Results 52 Weeks ended 24 April 2021 16 September 2021

  2. Slide 2: Overview, Financial Performance & Outlook, Strategy Update

    OVERVIEW JULIAN DUNKERTON, CEO FINANCIAL PERFORMANCE & OUTLOOK SHAUN WILLS, CFO Julian Dunkerton Shaun Wills Founder and CEO CFO STRATEGY UPDATE JULIAN DUNKERTON, CEO

  3. Slide 3: Sharpened strategy sets out key pillars of brand reset

    SHARPENED STRATEGY SETS OUT KEY PILLARS OF BRAND RESET Mission Objectives Foundation

  4. Slide 4: Performance significantly impacted by COVID-19 disruption

    PERFORMANCE SIGNIFICANTLY IMPACTED BY COVID-19 DISRUPTION • FOCUS ON RETURNING TO FULL PRICE STANCE • LAUNCH OF SHORT-ORDER TO AUGMENT MAINLINE • TOTAL FOLLOWERS INCREASED 6% • ACTIVE DATABASE UP 3% Mission • 1ST PLACE IN THE FT “EUROPE’S CLIMATE LEADERS 2021” Objectives • 33% SUSTAINABLE PRODUCT MI

  5. Slide 5: Financial Performance & Outlook

    FINANCIAL PERFORMANCE & OUTLOOK SHAUN WILLS, CFO

  6. Slide 6: Trading performance significantly impacted by COVID-19

    TRADING PERFORMANCE SIGNIFICANTLY IMPACTED BY COVID-19 FY21 Full Year Results

  7. Slide 7: Profit & Loss

    Me Fe i S bd RO y* <i PROFIT Cin. & LOSS J

  8. Slide 8: Reduction in revenue from enforced store closures

    REDUCTION IN REVENUE FROM ENFORCED STORE CLOSURES FY21 Full Year Results

  9. Slide 9: Volatile trading throughout the year reflects continued COVID-19 disruption

    VOLATILE TRADING THROUGHOUT THE YEAR REFLECTS CONTINUED COVID-19 DISRUPTION FY21 Full Year Results

  10. Slide 10: Gross margin impacted by elevated promotional activity online

    GROSS MARGIN IMPACTED BY ELEVATED PROMOTIONAL ACTIVITY ONLINE, OFFSET BY IMPROVED WHOLESALE MARGIN FY21 Full Year Results

  11. Slide 11: Disciplined cost management offsetting sales shortfall

    DISCIPLINED COST MANAGEMENT OFFSETTING SALES SHORTFALL FY21 Full Year Results

  12. Slide 12: Benefit to APBT from lower depreciation

    BENEFIT TO APBT FROM LOWER DEPRECIATION FY21 Full Year Results

  13. Slide 13: Significant improvement in other income due to IFRS 16 lease modifications

    SIGNIFICANT IMPROVEMENT IN OTHER INCOME DUE TO IFRS 16 LEASE MODIFICATIONS FY21 Full Year Results

  14. Slide 14: Cost management and accounting benefits offsetting COVID-19 disruption

    COST MANAGEMENT AND ACCOUNTING BENEFITS OFFSETTING COVID-19 DISRUPTION FY21 Full Year Results

  15. Slide 15: Balance Sheet

    BALANCE SHEET

  16. Slide 16: Robust balance sheet supported by net cash position

    ROBUST BALANCE SHEET SUPPORTED BY NET CASH POSITION • • • • • • • FY21 Full Year Results 16

  17. Slide 17: Continued focus on cash preservation

    CONTINUED FOCUS ON CASH PRESERVATION; REDUCTION IN INVENTORY OFFSET BY DEFERRED RENT • • • • FY21 Full Year Results

  18. Slide 18: Reduction in inventory despite pandemic

    REDUCTION IN INVENTORY DESPITE PANDEMIC • • •

  19. Slide 19: Looking Forward

    LOOKING FORWARD

  20. Slide 20: Revenue recovering, despite subdued footfall vs pre-COVID levels

    REVENUE RECOVERING, DESPITE SUBDUED FOOTFALL VS PRE-COVID LEVELS • • • • • • • • FY21 Full Year Results

  21. Slide 21: Revenue recovery in FY22, despite continued uncertainty

    REVENUE RECOVERY IN FY22, DESPITE CONTINUED UNCERTAINTY • • • • • • • • • • • • • •

  22. Slide 22: £35-45m SG&A cost headwinds expected in FY22E

    £35-45M SG&A COST HEADWINDS EXPECTED IN FY22E FY21 Full Year Results

  23. Slide 23: Strategy Overview

    STRATEGY OVERVIEW JULIAN DUNKERTON, CEO

  24. Slide 24: We're adapting to a new marketplace

    WE’RE ADAPTING TO A NEW MARKETPLACE WE’RE WE’RE WHILST WHILST RESPONDING RESPONDING CONNECTING CONNECTING TO MARKET WITH NEW TOCHANGES MARKET WITH NEW CONSUMERS CHANGES CONSUMERS AND ANDRESETTING RESETTING OUR OURBRAND BRAND

  25. Slide 25: Sharpened strategy sets out key pillars of brand reset

    SHARPENED STRATEGY SETS OUT KEY PILLARS OF BRAND RESET Mission 1 2 3 Objectives 4 Foundation

  26. Slide 26: New flagship store in London

    NEW FLAGSHIP STORE IN LONDON • • • • • •

  27. Slide 27: More than a store - showcasing all of our strategy pillars

    MORE THAN A STORE - SHOWCASING ALL OF OUR STRATEGY PILLARS Mission 1 2 3 • • Objectives • • • • • 4 Foundation • • •

  28. Slide 28: 4 pillars, executed through 11 initiatives

    4 PILLARS, EXECUTED THROUGH 11 INITIATIVES Mission Objectives 1 2 3 4 5 6 7 8 Create a Provide Deliver Achieve best in Provide a Low Net zero Lead Initiatives style outstanding inspiring class social leading impact carbon positive obsessed product brand media ecommerce materials emissions change con

  29. Slide 29: Inspire the right consumers through the right experiences online and in store

    INSPIRE THE RIGHT CONSUMERS THROUGH THE RIGHT EXPERIENCES ONLINE AND IN STORE 1 • Create a • style obsessed consumer • base 2 Provide • • outstanding product choice & value • 3 Deliver • • inspiring brand experiences •

  30. Slide 30: Pure Short Order (1/3)

    PURE SHORT ORDER (1/3) I – VERY REACTIVE II – CONSIDERED MARKET-SHARE PLAYS III - INCREASED SOCIAL ENGAGEMENT & BRAND ADVOCACY E.G. PERSONALISED RECYCLED SWEATS

  31. Slide 31: New Product Initiatives (2/3)

    NEW PRODUCT INITIATIVES (2/3) I – VERY REACTIVE II – CONSIDERED MARKET-SHARE PLAYS III - INCREASED SOCIAL ENGAGEMENT & BRAND ADVOCACY E.G. PERSONALISED RECYCLED SWEATS

  32. Slide 32: Influencer Personalisation (3/3)

    INFLUENCER PERSONALISATION (3/3) I – VERY REACTIVE II – CONSIDERED MARKET-SHARE PLAYS III - INCREASED SOCIAL ENGAGEMENT & BRAND ADVOCACY E.G. PERSONALISED RECYCLED SWEATS

  33. Slide 33: 'Social-first' brand marketing approach

    ‘SOCIAL-FIRST’ BRAND MARKETING APPROACH 4 • • Achieve best in class • • social media engagement 5 • • Provide a leading • ecommerce experience

  34. Slide 34: Website platform upgrade to include microservices

    WEBSITE PLATFORM UPGRADE TO INCLUDE MICROSERVICES → Recently viewed items → Personalised emails → Faster site performance → Store stock checker → Personalised homepage → Smoother scrolling → Next day delivery filter → Mobile first → Personalised guides → Keep items in basket after → App notification

  35. Slide 35: Award-winning progress made across initiatives

    AWARD-WINNING PROGRESS MADE ACROSS INITIATIVES 6 Accelerated pure cotton organic cotton target to 2025 Convert 20,000 farmers to organic; full traceable supply chain to farmer Low impact materials 93% of our packaging is Reusable, Recyclable or 100% recyclable, recycled or compostable Compostable pa

  36. Slide 36: Operational efficiencies across the supply chain and a re-energised corporate culture

    OPERATIONAL EFFICIENCIES ACROSS THE SUPPLY CHAIN AND A RE-ENERGISED CORPORATE CULTURE Mission 1 2 3 Objectives 4 →Strengthened leadership and people culture →Digital and IT transformation Foundation →Supply chain optimisation →Logistics innovation

  37. Slide 37: New KPIs aligned to sharpened strategy

    NEW KPIs ALIGNED TO SHARPENED STRATEGY FY21: 2.78m; +3% YoY FY21: 33%; +16% YoY FY22 Target: FY22 Target: FY21: 3.32m; +6% YoY FY21: 206 Days; +16% YoY FY22 Target: FY22 Target:

  38. Slide 38: Q&A

    2%) @AYGYAdNS e Q&A

  39. Slide 39: Appendix: IFRS

    APPENDIX IFRS 16

  40. Slide 40: Historical impairment result in lower net assets

    HISTORICAL IMPAIRMENT RESULT IN LOWER NET ASSETS

  41. Slide 41: Reduction in depreciation due to impairment charges

    REDUCTION IN DEPRECIATION DUE TO IMPAIRMENT CHARGES

  42. Slide 42: IFRS 16 lease modification and renegotiations causing significant increase YoY

    IFRS 16 LEASE MODIFICATION AND RENEGOTIATIONS CAUSING SIGNIFICANT INCREASE YOY • • • FY21 Full Year Results

  43. Slide 43: Superdry

    SUPERDRY ® Blame SUPERDRY © SIRs

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