// Superdry footfall drops 25% week-on-week across UK & US stores due to the coronavirus pandemic
// It does not expect its online sales to offset losses
// Superdry is negotiating rent cuts with landlords
Superdry is negotiating with landlords to secure store rental relief as the coronavirus crisis takes its toll on the retailer.
The retailer said the majority of Superdry’s European store estate has been affected by mandated closures, which contributes around 40 per cent of weekly sales forecasts.
Footfall decreased by 25 per cent week on week across Superdry stores in the UK and US.
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Superdry said it did not expect its online sales to offset losses, and predicted it would miss its 2020 targets.
Prior to the outbreak, Superdry forecast it would generate between £5 million to £6 million in sales per week for the remainder of the year.
The retailer said it was in talks with its lending group to provide ”additional flexibility and liquidity to support Superdry through this period of uncertainty”.
“Given the performance to date, we do not expect the decline in sales from our retail stores to be fully mitigated by sales through our ecommerce channel, which remains fully open for business,” Superdry said.
“Whilst we are also pursuing cost saving measures across the business, we do not expect these to be sufficient to offset the sales decline.
“As at today we have a strong position of £47 million net cash on our balance sheet. Also, our working capital performance to date has been better than our forecasts.
“We continue to work closely with our wholesale partners to minimise returns and cancellation risks on SS20 stock deliveries.”