Profit bled Dry by lockdowns

CHAIN WARNS ON ABILITY TO SURVIVE

FASHION chain Superdry has sounded a warning over its future after lockdown saw loses surge.

The retailer said enforced store closures had taken a heavy toll.

And with disruption set to continue it warned “a material uncertainty exists” which “may cast significant doubt on the group’s ability to continue as a going concern”.

Bosses insisted its finances were in a strong place, with £55million of net cash and £70m of lending at its disposal.

But it didn’t prevent Superdry’s already hammered share price diving more than 16% yesterday.

The firm has been battling to rediscover its glory years, when its edgy designs and reputation for quality won it loyal customers.

Co-founder Julian Dunkerton, now back in charge, insisted the business had “made great progress” and added: “Against the backdrop of the pandemic, we’ve actually done rather well.”

The group recently announced a tie-up with Brazil and Paris Saintgermain football star Neymar.

But Covid-19 has dented its claimed recovery with results revealing revenues dived 23% to just under £283m in the six months to October 24, with losses spiralling from £4.2m to £18.9m year on year.

Store sales during the 11 weeks since plunged 52%, with nearly threequarters of its stores temporarily shut. The impact was partly offset by a 13.2% rise in online trade.

Most Superdry stores are in city centres and other locations which have been hit hard by a drop in shopper numbers.

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