Superdry's turnover fell by almost 25% and the company's management had to turn to banks for a multi-million dollar loan.
According to the report for the last fiscal quarter (ended July 25), due to the ubiquitous quarantine of sales in stores, the British fashion retailer fell by 58.1%, and wholesale turnover fell by 31% due to blockages in many countries. That same factor led to an increase in online sales by 93.2%, as the company's total turnover fell "only" by 24.1%.
According to Superdry, management is even more satisfied with these results, as earlier forecasts were much more pessimistic. The brand has been experiencing difficulties for quite some time, beginning in mid-2019. The pandemic, on the other hand, has become a more severe problem if the brand manages to survive poorly. It's still noticeably better than many other retailers.
Also, in the survey, Superdry said the 80 million euro loan would be spent on restructuring the company and optimizing its processes for the future. For a company that makes such an impressive amount of money in difficult times, management takes a lot of risks. But fundamental changes are vital for the company right now.
Superdry's CEO, Julian Dunkerton, who founded the company in 1985 and rejoined the board in April last year, said he was convinced it was time to "restart" the brand. His transformation plans mean that the brand will return to its original style inspired by Japanese motifs. At the same time, the range of products will expand, while the number of discounts will remain limited.
Photo credit: depositphotos.com.
12 AUGUST 2020, United Kingdom