Superdry losses widen as lockdown hits sales

Superdry has reported widening losses for the first half of the year as lockdowns took their toll on revenue.

For the six months to 24 October 2020, underlying loss before tax at the British fashion retailer widened to 10.6 million pounds compared to 2.3 million pounds last year.

Revenue fell by 23.4 percent to 282.7 million pounds in the period as the pandemic forced stores to close. Superdry said 23 percent of its owned-store trading days were lost due to lockdown restrictions and the continued impact of social distancing on footfall even when open.

Store sales fell by 44.8 percent in the period, but were partially offset by a 49.8 percent increase in ecommerce sales. Online sales now account for around half of the retailer’s revenue.

Lockdowns hinder progress of brand refresh

Further national and regional lockdowns across the UK and Europe continued to disrupt trading into Q3. In the 11 week period, 38 percent of store days were lost, including the important weeks before and after Christmas in several key markets.

As of 9 January, 173 Superdry stores were temporarily closed, representing 72 percent of its portfolio.

Founder and CEO Julian Dunkerton said that while the company has continued to focus on its brand reset, lockdowns mean it “will take time to see the benefits of all our hard workflow through to the results”.

He continued: “With Silvana Bonello joining our team as Chief Operating Officer, we are well on the way to having the right leadership team in place to see us through the current difficult environment, oversee the delivery of our strategy and return the brand to long-term, sustainable growth once the pandemic recedes.”

Photo credit: Superdry, Facebook