Half year report, IAS 34 para 16A(b), explanatory comments on seasonality

Superdry Plc – Half year report – 28 October 2017

Industry: retail

Explanatory Notes to the Interim Financial Information (unaudited) (extract)

  1. Seasonality of operations

Due to the seasonal nature of the Retail segment, higher revenues and operating profits are usually expected in the second half of the year. The weighting of higher revenues in the second half of the year is a consequence of the brand’s strength in cooler weather categories, such as outerwear, which also carry higher average selling prices. Operating profits therefore benefit from operating cost leverage, particularly in the Group’s stores. Wholesale seasonality is more evenly spread across the year.

In the financial period ended 29 April 2017, 44.4% of total revenues accumulated in the first half of the year, with 55.6% in the second half. This corresponded to 24.1% of underlying profit before income tax in the first half of the year and 75.9% in the second half.