The group’s share price jumped almost 20 per cent on Monday as it revealed that trading over the first three months of its financial year was better than its initial expectations, although still sharply down on a year earlier.
Group revenue for the 13 weeks to July 25 fell 24.1 per cent as coronavirus-related lockdown measures hit clothing retailers. Nearly all Superdry’s shops have reopened but its store revenue in the quarter was 58.1 per cent lower than a year earlier. That was about 32.3 per cent on a like-for-like basis.
Superdry was struggling even before the pandemic struck and forced non-essential stores to close for months from late March. In January, the clothing group said its annual profits could be wiped out following a disappointing performance over the Christmas trading period.
The retailer said on Monday that it had agreed with its lenders, HSBC and BNP Paribas, to extend an asset-backed lending facility until January 2023. That replaces one that was due to expire a year earlier.
The group had £57.8m cash on its balance sheet as of August 6, up from the £39.8m it reported in May and £2.1m a year earlier.
“The actions we have taken to date have greatly strengthened our cash position, which together with our new asset backed lending facility, give us the flexibility to execute our current plans and to secure our recovery,” said Julian Dunkerton, chief executive. “I’m confident we can reset the brand and deliver on our transformation plans.”
Mr Dunkerton, who co-founded Superdry, has pledged to return to the fashion brand’s original design philosophy, which means producing colourful, Japan-influenced clothing, as well as increase product choice and to reduce discounting. He returned as chief executive last year after a boardroom coup.