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Superdry bolsters balance sheet as trading remains subdued

Current trading in the first quarter was better than initial expectations, but Covid-19 materially impacted the performance

Superdry PLC - Superdry bolsters balance sheet as trading remains subdued

Superdry PLC (LON:SDRY) said it has entered into a new financing facility to bolster its balance sheet while trading remains subdued despite most of its stores having reopened.

The hoodie designer said it has agreed with its existing lenders HSBC and BNPP a new £70mln loan facility, valid until January 2023, to replace an existing one due to expire in January 2022.

READ: Superdry faces new activist investor making positive noises

As at August 6, 2020, the retailer noted that it had £57.8mln of net cash, against £39.8mln as reported on May 7.

Despite 95% of Superdry's stores now operating, its total revenue was 24% down in the 13 weeks to July 25, 2020, including a 32% decline in like-for-like sales, while e-commerce sales rocketed by 93% compared to 2019.

Analysts at Liberum said new bank facility further provides significant liquidity.

"There is significant recovery opportunity ahead with autumn/winter 2020 where new product and ranges not only look very promising but could provide a step-change in trading performance across the group," they added.

Shares shot up 17% to 138.2p on Monday in early trades.

--Adds analyst comment, shares--

Quick facts: Superdry PLC

Price: 145.7 GBX

LSE:SDRY
Market: LSE
Market Cap: £119.51 m
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