Coronavirus: Superdry to miss targets after sales hit

Superdry said that 78 stores in Europe, which account for about 40% of weekly sales forecasts, are closed at present. In the UK and US ”footfall has been significantly impacted”, reducing on average 25% per week the retailer said.

Superdry reported: ”Given the performance to date, we do not expect the decline in sales from our retail stores to be fully mitigated by sales through our ecommerce channel, which remains fully open for business. Whilst we are also pursuing cost-saving measures across the business, we do not expect these to be sufficient to offset the sales decline.”

Superdry sought to reassure by pointing out it has £47m net cash on its balance sheet and ”working capital performance to date has been better than our forecasts”.

The retailer has stress-tested its forecasts ”under a range of disruption scenarios”, and said it is ”taking sensible measures to preserve cash, including, but not limited to, further cost actions (including negotiations with landlords regarding store rental relief), postponement of capex plans, and potential changes to the timing and structure of the future season stock buy.” It is also talking to its lenders about ”additional flexibility and liquidity to support Superdry through this period of uncertainty”.

Superdry chief executive and founder Julian Dunkerton said: “Along with everyone else, Superdry is experiencing major disruption to our business operations and recovery as we seek to protect our staff and customers from COVID-19.  

”We are taking mitigating action wherever we can but the situation is very fluid and uncertain, and we are working to put in place additional financing to secure our recovery.

”We also welcome the measures announced by the Chancellor yesterday to support UK businesses. The safety of our staff and customers remains our number one priority and we continue to take all appropriate action in line with local government advice. Together, we’re going to make our way through this unprecedented challenge, and I’m confident we can reset the brand and deliver on our transformation plans.”