British fashion brand Superdry reported a big drop in sales as COVID-19 lockdown mandates continue to hurt its in-store business. Nearly three-quarters of its brick and mortar locations (173 stores) are currently closed.
Impacted by the decline in its physical store sales, the company reported a pre-tax loss of $14.4 million in the six months leading up to October 24, compared to a loss of $3.1 million during the same period in 2019. Its first-half revenue declined by 23.3 percent to $385.2 million and was on a 27.2 percent decline in the 11 weeks to January 9, Business Of Fashion reported.
Fortunately, the company’s eCommerce business has helped offset some of the losses stemming from a decline in foot traffic and store locations’ closure. eCommerce sales reportedly accounted for half of its revenue in the first half.
For now, the company is holding off on sharing any projections for the financial year 2021 as the unpredictable nature of the ongoing pandemic will likely impact its business in unforeseen ways.
“We recognise the material uncertainty noted in our going concern assessment, and we are not providing formal guidance at this time for FY21 or beyond,” the company said.
The company, which has reportedly seen its stock value drop by 40 percent over the past year, recently appointed its co-founder Julian Dunkerton as its permanent CEO. It also making changes to several key executive ranks as it looks to revive its business.
The company currently holds $74.6 million in net cash.