Premier Retail has provided a detailed overview of its position amid the COVID-19 pandemic.
Despite reporting strong first half results for 2020, Premier has warned it could face hardships down the track.
Store operations have been disrupted since the outbreak of the virus, with the business closing two stores in Hong Kong.
The Group has warned it will close more if landlords aren't flexible on agreements.
"Landlords have a major role to play to ensure retailers can operate in the short term for the long term benefit of all stakeholders," Premier said in a statement.
In Australia and New Zealand, the Group has felt the impact of the virus on stores in tourist locations, those that are supported by international students and more generally by the announcement of COVID-19 being a pandemic.
Internationally the Smiggle business has been greatly disrupted, with trade in Hong Kong, Singapore, Malaysia, Ireland and the United Kingdom experiencing significant deteriorations.
Premier has acknowledged that there could be an impact on gross margin as it clears inventory in each market in response to consumption behaviours.
"It is impossible to predict or forecast the nature and impact of COVID-19 on consumption and supply chains in each of the countries we operate," Premier said.
"We have detailed cost and supply chain mitigation strategies underway which will be deployed depending on the way in which the challenges we face evolve.
"There could be significant hardship right across our business.
"We have been transparent in describing the ever-evolving impacts on our group.
"At this stage it is not currently possible to estimate the extent of these impacts on the group’s current and future earnings."
The business closed 1H20 with 19% more inventory than 1H19, putting it in good stead ahead of possible delays.
This inventory position is supported by its diverse sourcing policy which sees it source product both inside China and outside of China.
This was also helped by the decision to bring forward production and deliveries in advance of Chinese New Year.
For future deliveries, Premier has managed to secure most of the balance of its 2H20 inventory with only minor increases in supply chain costs.
Despite these challenges, Premier remains nimble with a strong balance sheet with cash on hand of $199.8 million, an experienced management team and a strong portfolio of brands that delivered record 1H20 results.