Superdry to miss targets after coronavirus hits sales
Superdry reports that it does not expect its online sales to offset losses, predicting it will miss its 2020 targets due to the “unprecedented challenges” of coronavirus.
The lifestyle fashion brand said it would no longer meet forecasts given in January for 2020 and would now not give formal guidance for the year.
The fashion outlet said that a majority of its continental stores have been forced to close, representing around 40% of its weekly sales. Stores in the UK, which account for 50% of sales, and the US, have seen footfall reduce by a quarter despite keeping their doors open as usual.
Chief Executive Julian Dunkerton said in a statement: "Along with everyone else, Superdry is experiencing major disruption to our business operations and recovery as we seek to protect our staff and customers from Covid-19.
"We are taking mitigating action wherever we can but the situation is very fluid and uncertain, and we are working to put in place additional financing to secure our recovery."
The company said it has £47 million of cash on its balance sheets and is in discussion with its banks to “provide additional flexibility and liquidity” should it be needed.
On Tuesday Chancellor Rishi Sunak promised to unleash a £350 billion package to help save UK businesses, slash business rates and hand out grants to pubs and retailers.
On Wednesday, Dunkerton added: "The safety of our staff and customers remains our number one priority and we continue to take all appropriate action in line with local government advice. I’m confident we can reset the brand and deliver on our transformation plans."
In December, Superdry revealed it encountered a £4.2m loss in its first half-year results after Dunkerton returned to the company.
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