Update5 Nov 2020 07:09
Total revenue declined (23.3)% in H1, with a modest improvement quarter-on-quarter to (22.8)% in Q2 (Q1: (24.1)%), reflecting the challenging trading environment as a result of continued disruption from Covid-19, partially offset by the strong Ecommerce performance.
Stores continue to be impacted by Covid-related measures suppressing footfall, particularly in large city centre locations. Like-for-like store trading in the last six weeks of H1 was (32.4)%, with UK trade impacted by continued social distancing measures, partially offset by stronger performance in Europe where footfall declines have been less severe. As at 5 November, 122 stores are now temporarily closed across England, Wales, France, Belgium and Ireland, with 117 stores still open and trading.
Ecommerce is performing well and strengthened through Q2 21, with like-for-like sales up 51.9% in the last six weeks of H1. The improvement was driven by owned site sales, which increased 68.9% year-on-year coinciding with the launch of our new AW20 product and the targeted clearance of aged stock.
Wholesale faces many of the same headwinds as Stores due to Covid-19 restrictions and uncertainty. The performance in Q2 in part reflects later phasing of AW20 forward order deliveries, with 68% shipped year to date compared to 84% at the same time last year, and the deferred intake of stock due to the widespread supply chain disruption earlier in the year from Covid-19.
In response to Covid-19 we have increased promotional activity to clear excess inventory, reducing full price mix2 and Retail gross margin in the first half. This has been partially offset by the continued focus on both cost management and the cash preservation actions beginning in late FY20. Given the continuing disruption, we expect these margin dynamics to continue for the remainder of FY21.
The brand reset remains on track, despite the current unprecedented levels of disruption and volatility. At this stage we are experiencing national and regional lockdowns in the UK and internationally which will restrict the operations of our store estate, however we are focused on maximising revenues over the Black Friday trading period from Ecommerce. We have in place commercial and operational plans to capture the expected elevated demand online across this important period. We are managing cash and costs tightly as we did during the initial lockdown, continuing to drive our strong liquidity position. At 3 November we have a net cash balance of £22.2m (2019: £(16.4)m) as well as access to our recently refinanced and currently undrawn borrowing facilities.
Julian Dunkerton, Chief Executive Officer, said:
"Covid-19 continues to disrupt our store and wholesale channels, but this is being partially mitigated by strong sales through our Ecommerce operations. This has been an important period for Superdry, with the launch of our full Autumn/Winter 20 ranges and a true focus on using our s
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