Superdry Q1 trading better than expected, secures new financing facility

Superdry has reported better than expected trading for the first quarter of the year despite a drop in sales and has secured a new 70 million pound financing facility to help it ride out the pandemic.

The British brand agreed on the new Asset Backed Lending Facility (ABL Facility) with its existing lenders, HSBC and BNPP. It will extend until January 2023 and will replace the existing facility in place which was due to expire in January 2022.

In terms of trading, the company said it’s results were better than initial expectations. Total group revenue for the first quarter was down 24.1 percent compared to the same period a year earlier, due in large part to store closures during lockdown.

Superdry Q1 e-commerce sales up 93 percent

Superdry has taken a gradual approach to its store reopenings and now has around 95 percent of its store estate open. Store revenue in the quarter was down 58.1 percent compared to the prior year - or 32.3 percent on a like-for-like basis. The company said its wholesale partners, particularly franchisees, have endured similar difficulties as its owned stores, down 31 percent.

However, e-commerce has been strong, up 93.2 percent in the quarter, though the company added that those levels have been normalising in recent weeks as stores reopen and the company trades against the promotional stance in the prior-year period.

As of 6 August, Superdry had 57.8 million pounds net cash on its balance sheet, compared to the 39.8 million pounds reported on 7 May and 2.1 million pounds reported on 6 August 2019.

“The actions we have taken to date have greatly strengthened our cash position, which together with our new ABL Facility, give us the flexibility to execute our current plans and to secure our recovery,” CEO Julian Dunkerton said in a statement. “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.”

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