Superdry full-year sales slide as it explores financing options

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Superdry has reported a slump in full-year sales exacerbated by the outbreak of coronavirus.

The fashion retailer reported a 19.1% slump in full-year group revenue to £705.5m, compounded by a 57% tumble in stores sales in its fourth quarter following mandated store closures across its estate due to the public health emergency.

Superdry said its ecommerce sales have nearly doubled over the last four weeks and womenswear has accounted for nearly half its sales for the first time. This increase was not sufficient to offset to the overall 8.2% decline in ecommerce sales over the course of the full year.

Over the full year, store revenue declined 22.9%, which Superdry attributed to “the return to a full-price trading stance, particularly over the peak trading period, reflected in the full price sales mix increasing by 16% to 69% over the full year”.

Prior to the pandemic and subsequent store closures, Superdry’s store sales recorded an average decline of 12.1% year on year.

Superdry has said its lenders remain supportive and it “continues constructive discussions with its existing lenders and with potential new financing providers as it explores the need for the necessary flexibility and additional liquidity going forward” due to ongoing business disruption triggered by the coronavirus. The retailer has said it “this includes exploring its potential eligibility for government-backed borrowing facilities”.

The retailer has axed dividend payments for its most recent financial year.

Chief executive Julian Dunkerton said: “As with all retailers, the Covid-19 pandemic has caused major disruption to our business operations and supply chain. I am pleased with the accelerating shift in sales to online, and we’ve seen a particularly good performance from our women’s ranges which, for the first time ever, are accounting for around half our sales. Clearly, however, the closure of all our stores has had a major impact. We are taking all practical steps to preserve cash, looking carefully at all areas of the business and working to secure additional liquidity and financial flexibility.

“We continue to work hard so that the business can emerge stronger from this extraordinary period. It will take time to return to normality, for now, we remain open for business online through superdry.com, our stores in Europe have begun to reopen and I am excited by our new ranges for the autumn/winter season.”