19th Jan 2021 10:01
(Alliance News) - Superdry PLC on Tuesday declared no dividend for the first half of its financial year, as its interim loss widened and revenue declined on Covid-19-related disruption.
Shares in the fashion chain were 12% lower at 210.47 pence on Tuesday in London.
For the 26 weeks ended October 24, Superdry reported a pretax loss of GBP18.9 million, widened from GBP4.2 million the same period the year before. The loss including GBP8.3 million of exceptional costs, mainly related to unrealised mark-to-market losses on forward contracts.
On an underlying basis, Superdry's pretax loss widened to GBP10.6 million from GBP2.3 million, reflecting disruption to trading.
This was on revenue that declined by 23% year-on-year to GBP282.7 million from GBP369.1 million, as 23% of owned-store trading days were lost due to lockdown restrictions. What's more, footfall was crippled by social distancing rules even when open.
Revenue from Superdry's retail business declined by 19% to GBP173.6 million due to lost store revenue from enforced temporary closures. This was despite a rise in customers shopping online, leading to e-commerce generating half of all retail sales in the period.
Meanwhile, Wholesale revenue fell by 29% to GBP109.1 million, as sales partners suffered their own pandemic woes. In addition, performance was affected by the later phasing of autumn and winter forward orders and the deferred intake of stock due to supply chain disruption.
Superdry declared no dividend for the interim period, compared to a 2.0 pence per share payout the year before.
Looking ahead, trading has continued to be tough in the third quarter to date, with 38% of store days lost due to further lockdowns in the 11 week period ended January 9, leading to a 27% revenue decline.
The group is not providing formal guidance for its 2021 financial year or beyond; however, Superdry does expect prolonged store closures and subdued footfall to hurt revenue.
"Covid-19 has brought substantial challenges to Superdry as with many other brands, and this has continued through the first half and into the second with renewed lockdowns in our key markets. Our team has responded incredibly well and above all we've been focused on looking after our colleagues and customers and ensuring everyone is keeping safe," said Chief Executive Officer Julian Dunkerton.
"While revenue and underlying profit have been impacted by the external conditions, the brand has continued to focus on the reset, however, with over 70% of stores currently closed and having to shut a significant number over peak, it will take time to see the benefits of all our hard work flow through to the results," Dunkerton added.
By Dayo Laniyan; [email protected]
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