(Alliance News) - Superdry PLC on Thursday reported strong online trading, but said its earnings in its most recently ended financial year took a hit from store closures.
The clothing retailer said it continues to focus on a tight control of cash as the Covid-19 pandemic presents an "unprecedented challenge" for everyone.
Superdry said it closed its first stores in Italy in mid-March, quickly followed by stores across the rest of Europe, in line with government guidelines to help contain the spread of Covid-19.
However, the company said it continued to trade online, with stringent health and safety controls in place across its warehouses, with e-commerce revenue nearly doubling in the last four weeks to GBP3.7 million per week.
Overall, Superdry said revenue in the final quarter of its financial year 2020, which ended April 35, was down 37% year-on-year to GBP118.5 million from GBP187.8 million. For the full year, revenue was down 19% to GBP705.5 million from GBP871.7 million.
However, Superdry noted that, prior to the Covid-19 outbreak, revenue performance had improved to be down just 1.0% year-on-year in the six weeks to March 7.
The company had planned to report its full annual results on July 9 but on Thursday said it will be delayed by between five and eight weeks.
As of Tuesday, Superdry said it had GBP39.8 million net cash versus GBP47.0 million on March 18.
In light of the current situation, the company said it has made the decision not to pay a final dividend in relation to financial 2020.
Looking ahead, Superdry said it continues to review its financing arrangements. The company's existing lenders - HSBC Holdings PLC and BNP Paribas SA - continue to be supportive of Superdry's current and future financial requirements and, as part of this process, have agreed to waive its April fixed charge covenant test.
"Our first priority through the pandemic has been supporting our colleagues and communities through what is a very uncertain time," said Chief Executive Julian Dunkerton.
"We continue to work hard so that the business can emerge stronger from this extraordinary period," added Dunkerton.
Superdry shares were trading 9.6% higher in London on Thursday at 129.55 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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