Superdry drops full-year guidance amid 'unprecedented challenges' of Covid-19

Superdry has announced it is facing “unprecedented challenges” from Covid-19 and has temporarily closed stores in a number of countries.

The British fashion retailer also announced it would not meet the guidance given on 10 January and would accordingly no longer be giving formal guidance for the 2020 financial year.

Prior to the global Covid-19 outbreak, the company expected its store estate to generate between 5 and 6 million pounds in sales per week for the remainder of the financial year.

As of Tuesday, 78 Superdry stores across Europe have been closed. That accounts for the majority of its European store estate which normally contributes around 40 percent of weekly sales forecast.

In the UK and the US, where stores remain largely open, footfall has been significantly impacted, down an average 25 percent week-on-week. These markets represent around 50 percent and 10 percent of weekly sales forecasts, respectively.

The company said it does not expect its online sales to fully mitigate the drop in physical store sales.

Superdry drops full-year guidance

On a brighter note, the retailer said it had “a strong position” of 47 million pounds net cash on its balance sheet.

Superdry CEO 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. We also welcome the measures announced by the Chancellor yesterday to support UK businesses.

“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. Together, we're going to make our way through this unprecedented challenge, and I'm confident we can reset the brand and deliver on our transformation plans.”

Photo credit: Superdry, Facebook

 

Related news

MORE NEWS

 

LATEST JOBS

 

MOST READ