Monday 21 September 2020 7:47 am

Superdry loss widens as pandemic hits turnaround plan

Superdry today reported deepening losses for the full year as the outbreak of coronavirus took its toll on the fashion chain’s turnaround strategy.

Read more: Superdry secures new lending facility as coronavirus hits revenue

The figures

Superdry posted revenue of £704.4m in the 52 weeks to 25 April, down 19.2 per cent.

Statutory loss before tax widened from £89.3m to £166.9m.

Net cash ticked up 2.2 per cent to £36.7m.

Why it’s interesting

The results come during a turbulent period for Superdry, which last year set out a turnaround plan after founder Julian Dunkerton made a dramatic return to the troubled retailer.

But these difficulties have been compounded by the outbreak of the coronavirus crisis, which has had a stark impact on the high street.

Superdry said its fall in revenue was due to a planned reduction in discounting as well as the impact of the pandemic, with the chain’s entire store estate closed from 22 March.

The company’s statutory loss before tax hit £166.9m after its revised trading outlook caused a store impairment charge of £136.9m.

Superdry said it would not pay a dividend for the full year.

The fashion chain said trading had improved since the end of the financial year as stores had reopened with social distancing measures in place.

In the year to date revenue is down 27 per cent on the same period last year, with sharp falls in the UK and US partially offset by improved online sales.

Superdry said it had ramped up discounting in recent months to help clear excess stock that had accumulated during coronavirus closures.

The company said it would not provide formal guidance for the full year due to ongoing uncertainty, but warned the pandemic may impact its ability to carry out its turnaround plan.

Read more: Superdry pulls out of mainland China store venture with expected £6m write off

What Superdry said

“As with all retailers, we have experienced significant disruption to our operations, and this has inevitably had an impact on our FY20 results, but I’m proud of how everyone in the business has stepped up during this exceptional time,” said founder and chief executive Julian Dunkerton.

“While our underlying profit has been impacted by trading performance during the year, including Covid-19 related store closures, I am particularly pleased by how strongly ecommerce has performed, with FY21 first quarter revenues nearly doubling year-on-year. 

“This has been complemented by our increased digital consumer engagement, which helped drive a stronger womenswear mix than we have ever seen before.”

Main image credit: Superdry