City desk. Profit bled Dry by lockdowns
CHAIN WARNS ON ABILITY TO SURVIVE
FASHION chain Superdry has sounded a warning over its future after lockdowns saw losses 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 £70million of lending at its disposal.
But it didn’t prevent Superdry’s already hammered share price diving more than 16 per cent 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 per cent to just under £283million in the six months to October 24, with losses spiralling from £4.2million to £18.9million year on year. Store sales during the 11 weeks since plunged 52 per cent, with nearly three-quarters of its stores temporarily shut. The impact was partly offset by a 13.2 per cent rise in online trade. Most Superdry stores are in city centres which have been hit hard by a drop in shopper numbers.