10th Aug 2020 08:47
(Alliance News) - Superdry PLC on Monday said trading in the first quarter of financial 2021 has been better than initial management estimates, however, the disruption caused by the Covid-19 pandemic continues to hurt performance.
The clothing retailer also announced a new GBP70 million asset-backed lending facility, extending the company's debt term until January 2023.
Shares in Superdry were up 16% at 137.06 pence each in London on Monday morning.
The new loan facility replaces the existing facility that the company had in place, which was due to expire in January 2022.
Together with a strong net cash position, the new debt facility gives us the necessary flexibility and liquidity going forward, Superdry said. As of Thursday last week, the company had GBP57.8 million net cash on the balance sheet versus GBP39.8 million net cash as at May 7.
For the 13 weeks to July 25, Superdry saw a 24.1% year-on-year drop in group revenue, largely due to the impact of store closures as a result of Covid-19.
Gradual reopening began at the start of financial 2021, the company said, and 95% of stores have now re-opened, with store revenue down 58.1% year-on-year in the first quarter. Like-for-like revenue fell 32.3% in the first quarter.
"Our Wholesale partners, particularly franchisees, have suffered the same headwinds and challenges as our owned stores, down 31.0% year-on-year," Superdry explained.
The company's online operations, however, reported a solid performance with a 93.2% jump in quarterly revenue, normalising in recent weeks as stores re-open and as retailer trade against a promotions-led comparative period.
Chief Executive Officer Julian Dunkerton said: "The actions we have taken to date have greatly strengthened our cash position, which together with our new asset-backed lending facility, gives us the flexibility to execute our current plans and to secure our recovery.
"Together, we are making our way through this unprecedented period, and I'm confident we can reset the brand and deliver on our transformation plans."
By Tapan Panchal; [email protected]
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