Covid-19 has created a huge hole in Superdry's turnover, which fell 25 % despite online sales doubling. The company borrowed 70 million pounds (80 million euros) to prepare for a transformation.
Still better than expected
In its latest financial quarter (ending 25 July), the British fashion retailer was hit by the coronavirus pandemic: sales in its own stores dropped 58.1 % and wholesale turnover fell 31 % due to lockdowns in many countries. On the bright side, the same factor pushed online sales up 93.2 %, meaning the group's total turnover fell 'only' 24.1%.
Superdry (and its investors) are rather pleased with the results, as earlier forecasts were a lot more pessimistic as the label was in trouble even before the pandemic began and it had to concede disappointing sales in the important holiday season.
"The actions we have taken to date have greatly strengthened our cash position", CEO Julian Dunkerton said. The company has now agreed with the banks on a 70 million pound loan, which should "give us the flexibility to execute our current plans and to secure our recovery".
Dunkerton, who founded Superdry and retook control of it in April last year after beating a management coup, says he is convinced he can 'reset' the brand. His transformation plans mean the brand will return to its original designs, inspired by Japan. Meanwhile, the product range will be expanded and discounts will be limited.