Superdry pays special dividend after year of strong growth

Superdry announced a special dividend as the clothing brand reported a rise of more than 11% in annual profit.

Underlying pre-tax profit for the year to 28 April rose 11.5% to £97m, in line with expectations, as revenue increased 16% to £872m. Statutory pre-tax profit fell 23% to £65.3m because of fair value movement on forward exchange contracts and a write-down on the value of a Berlin store.

The FTSE 250 group, whose clothes are worn by famous people such as David Beckham and Idris Elba, said it would pay shareholders 25p a share on top of its 31.2p ordinary annual dividend, which rose 11.4%.

Superdry’s gross margin narrowed to 58.1% from 60.2% a year earlier because of growth at Superdry’s less profitable wholesale operation and a push to sell old stock. The company said margins should improve in the current financial year after the stock clearance completes.

Euan Sutherland, Superdry’s chief executive, said: Superdry has had another strong year … Whilst the consumer environment continues to be challenging, the board remain confident that Superdry is a uniquely advantaged, highly cash-generative business that will continue to deliver sustainable growth for our investors. This confidence is demonstrated through our second special dividend in two years of 25p per share in addition to an 11.4% increase in the total ordinary dividend."