Britain's Superdry sales plunge 37% as stores shuttered

FILE PHOTO: A man walks past a window display at a Superdry store in London, Britain, March 1, 2019. REUTERS/Toby Melville

LONDON (Reuters) - British fashion retailer Superdry SDRY.L said its revenue plunged 37% in its latest quarter, reflecting the closure of its stores across the world because of the novel coronavirus.

Superdry, which sells sweatshirts, hoodies and jackets adorned with Japanese text, also said on Thursday it would not pay a final dividend for its 2019-20 year.

By late March all of its owned stores in Britain, Europe and the United States and the majority of its franchise locations were closed, the group said.

Superdry has, however, continued to trade online, offsetting some of its lost store sales.

Group revenue fell to 118.5 million pounds ($146.7 million) in its fiscal fourth quarter versus 187.8 million pounds in the same period last year. Store sales plunged 57% and wholesale revenue was down 36%, but e-commerce sales increased 6.8%.

Superdry shares were up 5.7% at 0712 GMT, paring 2020 losses to 75%.

To preserve cash in the crisis, Superdry furloughed 88% of its staff and sought government job retention support in its markets.

It has also reduced future stock intake by 20%, secured three-month rent deferrals, and cut capital expenditure. Directors have taken a 25% pay cut and no bonuses will be paid for 2019-20 and 2020-21.

Superdry, which has 39.8 million pounds of cash, said its banks waived an April 2020 fixed charge covenant test. It is in talks with its lenders and with potential new financing providers regarding additional liquidity.

Reporting by James Davey; editing by Jason Neely and Barbara Lewis