Superdry turnaround hit by Covid disruption

Superdry reported an underlying loss before tax of £10.6m in its first half – up from £2.3m – and sales fell 23.4% to £282.7m.

Founder and chief executive Julian Dunkerton said progress was being made but the closure of stores during lockdown means it will ”take time” to bear fruit.

The retailer cautioned that the disruption caused by Covid-19 means “a material uncertainty exists and may cast significant doubt on the group’s ability to continue as a going concern” but ”directors have a reasonable expectation that the group have adequate resources to continue in operational existence for the foreseeable future”.

Superdry has previously flagged the going concern point, including in its full-year results last September. The retailer pointed out today that it has £130m of liquidity available.

In the second half so far, up to January 9, sales have fallen 27.2%. 

Superdry’s commerce sales rose 49.8% in the first half to account for 50% of retail revenues. However, that only partially offset lost store sales, which were down 44.8%.

Dunkerton said: “Covid-19 has brought substantial challenges to Superdry as with many other brands, and this has continued through the first half and into the second with renewed lockdowns in our key markets.

“Our team has responded incredibly well. While revenue and underlying profit have been impacted by the external conditions, the brand has continued to focus on the reset. However, with over 70% of stores currently closed and having to shut a significant number over peak, it will take time to see the benefits of all our hard work flow through to the results.

”With Silvana Bonello joining our team as chief operating officer, we are well on the way to having the right leadership team in place to see us through the current difficult environment, oversee the delivery of our strategy and return the brand to long-term, sustainable growth once the pandemic recedes.”