As SuperGroup posted a strong sales performance in its first quarter with revenues growing by 10% to £59.7m Drapers takes a look at what the analysts make of the results.
Nick Bubb said the company was “on the road to recovery” after a sold first quarter.
Bubb added: “The announcement today that Q1 retail sales were up by 1.7% like-for-like is reassuring, given the unhelpful summer weather for fashion retailers and the weak UK economy etc, although we have always argued that Superdry’s product mix is better suited to cooler and wetter weather.”
Analysts at investment bank Merrill Lynch said: “Despite a disappointing track record on execution, we believe SuperGroup remains an attractive story for two main reasons: firstly, Superdry is a differentiated brand benefiting from rising brand awareness, and secondly SuperGroup offers a compelling space growth story, both in the UK and internationally, complemented by a successful online strategy.”
Sanjay Vidyarthi, analyst at Esprito Santo, said on-going changes were positive for the longer term health of the brand.
“Our view remains that as the new management team settles in, either the rate of expansion through new space (UK and overseas) may slow as management becomes more selective about appropriate sites, or the cost of supporting that growth may increase, given previous lack of investment in infrastructure,” said Vidyarthi.
Stockerbroker Singer Capital Markets said after SuperGroup shares reached an all-time low of 265p on June 18 the shares have had a good summer and have subsequently doubled to 531p.
Panmure analyst Jean Roche said forecasts were being raised on the back of the solid sales announced today. “We have raised our full year 2013 profit before tax forecast to £50.9m from £50.5m,” she said.