Covid could kill us off warns Superdry boss
FASHION company Superdry’s survival is under threat after the pandemic sent its finances spiralling deeper into the red.
The UK brand’s first-half pre-tax losses ballooned by 350 per cent to £18.9million as revenues slumped 23.4 per cent to £282.7million.
Strong online sales have not been enough to compensate for the hit Superdry is taking after the latest national lockdown closed all of its stores.
Before that, the chain was struggling to cope with the lower footfall caused by social distancing.
Superdry said the damage from the pandemic to both its trading and its ability to meet conditions attached to bank loans cast “significant doubt” over its ability to continue as a going concern.
Julian Dunkerton, its founder and CEO, 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.”
Despite the tough conditions, however, Superdry said it believes it has enough cash – £54.8million – to see it through the crisis.
Prior to the pandemic, Dunkerton was in the early stages of trying to turn around Superdry’s lacklustre performance. However, Covid-19 has hampered his efforts to revive the fashion retailer.
He only returned to the brand last April after a boardroom coup.
Dunkerton added: “While revenue and profit have been impacted by the external conditions, the brand has continued to focus on the reset.
“However, with over 70 per cent 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.”
As part of his plans, Dunkerton has overhauled Superdry’s products, introduced new design-led ranges and focussed heavily on social media-led digital marketing.
He wants to make it a leading green fashion brand and is introducing more sustainable practices to its supply chain.