// Superdry secures £70m financing deal to ride out coronavirus crisis
// In the quarter ending July 25, sales did not decline as much as feared – total sales down 24.1%
// Store sales down 58.1%, like-for-likes down 32.3% but online sales surged 93.2%
Superdry has welcomed a new £70 million financing deal with its banks to help it through the coronvirus crisis as it revealed that stores sales continue to tumble.
The fashion retailer said its performance in the three months to July 25 was better than first feared as total sales declines narrowed to 24.1 per cent.
It admitted that trading remained “materially” affected by the pandemic despite 95 per cent of its shops now having reopened.
- Major investor acquires Superdry stake after shares fall
- Superdry exits China after strategic review
- Superdry mulls financing options as coronavirus hits sales
Total store sales plunged 58.1 per cent in its first quarter, with like-for-like trading down 32.3 per cent in the 13 weeks to July 25.
Online sales surged 93.2 per cent in the quarter, though it said they have started returning to more normal levels in recent weeks as stores reopen with the easing of lockdown restrictions.
Superdry said previously that growth in its ecommerce business had offset around a third of lost store sales when it was forced to shut all its outlets.
Co-founder and chief executive Julian Dunkerton said the new financing deal helps “secure our recovery”.
It comes after the company had already taken numerous steps to save cash, including furloughing 88 per cent of its staff at one stage in the lockdown, and rent referrals from landlords.
“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,” Dunkerton said.
“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.”
with PA Wires