You can hardly walk along any high street without spotting Superdry product, from T-shirts emblazoned with Japanese logos to colourful hoodies and checked lumberjack shirts.
Surely this is what every brand longs for – is it not a retailers dream to have a brand teenagers and 40 year old men alike are clamouring to get their hands on?
However with success also comes intense scrutiny and every move by the brand and retailer is now watched eagerly by the company’s shareholders with speculation as to when and if the label has reached its peak.
Over the last couple of years young fashion brand Superdry, founded by Julian Dunkerton in 2003, has seen immense success as the label’s utility look hit the mark perfectly. In the past nine years Superdry has grown incrementally ploughing its product into 75 UK concessions and rapidly increasing its presence across the high street with 65 UK stores.
This growth has naturally generated a boost in sales. In the year ended 1 May 2011 parent company SuperGroup generated sales of £237.9m, underlying profit before tax of £50.2m with net cash at the yearend of £32.2m.
However it has not been a bed of roses for the public listed company and some suggest that the brand may have saturated the market making it less desirable.
The brand and retailer has also come under heavy fire from its stockists with criticisms about deliveries over Christmas 2010 and some stockists complaining that product design has stagnated. New IT systems at its warehouse caused further problems last year.
The latest chapter has seen SuperGroup facing regulatory investigation following its “arithmetic error”. The company issued a shock profit warning earlier this month after uncovering maths errors in its forecasting. SuperGroup said it would have to cut its full-year pre-tax profit by £7.5m because of the error - where a plus sign was entered rather than a minus. This news in turn led to its shares crashing by nearly 40%.
With shareholders keeping a careful watch over the future of the brand and other suggesting it has reached its peak could this be time for another young fashion brand to step up to take Superdry’s crown?
Victoria Gallagher, News Reporter, Drapers