SUPERDRY does not expect its online sales to offset losses, as it predicted it will miss its 2020 targets due to the "unprecedented challenges" of the coronavirus outbreak.

Yesterday the retailer said the majority of Superdry's European store estate has been affected by mandated closures, which contributes around 40 per cent of weekly sales forecasts.

Currently, stores in the UK and US remain largely open, but footfall has reduced on average 25 per cent week on week.

In a trading update at the start of the year and prior to the outbreak of coronavirus in Europe, Superdry forecast it would generate between £5m to £6m in sales per week for the remainder of the year.

It said yesterday it is stress-testing its forecasts under a range of scenarios and said the board is taking "sensible measures to preserve cash", which includes negotiations with landlords regarding sore rental relief.

The group said it is in discussions with its lending group to provide "additional flexibility and liquidity" to support the company.

In December, Superdry revealed it swung to a £4.2m loss in its first halfyear results after chief Julian Dunkerton returned to the company.

The news followed the collapse of fellow fashion firm Laura Ashley into administration on Tuesday.

Shares closed down 22.6 per cent.

(c) 2020 City A.M., source Newspaper