Superdry loss widens as Coronavirus hits turnaround strategy

Superdry has reported deepening losses for the full year due to the Coronavirus pandemic impacting the chain’s turnaround strategy.

Superdry posted revenue of £704.4m in the 52 weeks to 25 April, down 19.2%. The company also reported a statutory loss before tax of £166.9m, up from £89.3m in 2019.

The fashion retailer also reported a full-year underlying pre-tax loss of £41.8m, which includes the impact of provision and accounting charges of £19.7m. Net cash ticked up 2.2% to £36.7m.

The reports come during a tough period for Superdry, as last year the company set out a turnaround plan after founder Julian Dunkerton made a return to the struggling retailer.

However these difficulties have been exasperated by the COVID-19 pandemic, which has had a great impact on retail.

Superdry said its revenue tumbled due to a planned reduction in discounting as well as the impact of the pandemic, with the chain’s entire store estate closed from 22 March.

The company also said its trading had improved since the end of the financial year as its stores had reopened with social distancing measures in place.

In the year to date revenue is down 27% on the same period last year, with sharp falls in the UK and US partially offset by improved online sales.

Superdry added it had boosted its discounting in recent months to help clear excess stock that had accumulated during the COVID-19 lockdown.

Founder and CEO of Superdry, Julian Dunkerton said: "While our underlying profit has been impacted by trading performance during the year, including COVID-19 related store closures, I am particularly pleased by how strongly ecommerce has performed, with FY21 first quarter revenues nearly doubling year-on-year."

"This has been complemented by our increased digital consumer engagement, which helped drive a stronger womenswear mix than we have ever seen before. I'm pleased that we have delivered a good increase in the full price mix, which is up 12pts year-on-year and has had a positive impact on gross margin."

"We are delivering on the reset of the business, despite the impacts of the pandemic. This has included re-invigorating the store design and layout, preparing for a relaunch of our website, and significantly increasing the number of options available both in store and online."

Superdry said it would not provide formal guidance for the full year due to ongoing uncertainty and warned the pandemic may impact its ability to carry out its turnaround strategy.