LONDON (ShareCast) - (Sharecast News) - Superdry announced it was pulling its full-year dividend on Thursday, after Covid-19 shut stores around the world and caused revenues to slump.
Updating on trading, the fashion retailer said the fourth quarter had been "substantially impacted" by the Covid-19 outbreak, with group revenues down 36.9% at ?118.5m. Full-year revenues fell 19.1%, to ?705m, as it moved away from persistent discounting.

Over the full-year, online sales decline 8.2% to ?149.6m. But in the six weeks to 7 March, they improved 18.8%, and over the last four weeks surged 100% to around ?3.7m. Superdry said online sales had offset around one third of stores sales lost during the pandemic.

Wholesale revenues were down 20.1% over the full year, at ?267.6m, and by 35.8% in the last quarter. Superdry said the timing of a recovery in wholesale had been impacted by Covid-19, as only 22% of franchise stores were currently trading.

Mitigating actions taken by Superdrug include furloughing 88% of staff, executive directors taking a 25% pay cut for three months, and the bonus scheme being temporarily scrapped.

It has also extended payment terms with suppliers and agreed a "majority" of requested three-month rent deferrals.

It added: "In light of the current situation, the board has made the decision not to recommend paying a final dividend in relation to the 2020 full year."

Julian Dunkerton, chief executive, said: "As with all retailers, the Covid-19 pandemic has caused major disruption to our business operations and supply chain. I am pleased with the accelerating shift in sales to line.

"Clearly, however, the closure of all our stores has had a major impact. We are taking all practical steps to preserve cash, looking carefully at all areas of the business, and working to secure additional liquidity and financial flexibility."

By 22 March, all of Superdry's stores in the UK, mainland Europe and the US were closed because of the coronavirus. It has started to open some since then, however, in line with relevant government advice in Germany, Sweden and Denmark, and as at 6 May, 48 stores had reopened. Superdry expects to have 130 open by the end of May.

Superdry also announced it was delaying full publication of its final results by between five and eight weeks. "This will ensure that the company and its auditors have adequate time to complete their standard procedures, given the current working restrictions," it said.

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