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SuperGroup closes year in "better shape" with sales up 13%

SuperGroup has announced sales increased by 18% to £134.8m for the 15 week period to April 25, driven by a strong performance in the retail division following a Sale in the third quarter.

Total retail sales increased by 21% to £76m, while wholesale sales increased by 9.7% to £58.8m.

Wholesale performance was affected by the administration of one its key customers, young fashion chain Bank, in the UK and the strength of sterling against the euro in the second half.

The group said it expects gross margin in the fourth quarter to have slightly increased due to a favourable channel mix and partially offset by currency movements. Overall gross margin is broadly flat year-on-year.

For the full year, sales were up 12.5% to £484.7m. Retail sales increased 16.7% to £332.8m, while wholesale sales increased 4.5% to £151.9m.

Chief executive Euan Sutherland said: “The group traded robustly through the final quarter and we have closed the year in better shape.”

It opened a net 24 new stores during the full year to April 25, which increased space by 13% compared with the previous year. It also opened 29 franchise stores during the year and ecommerce sales increased by 39.5% on 2014.

Sutherland said: “Our focus remains on the creation of a global lifestyle brand, through the extension of the Superdry brand and execution of clear retail growth opportunities, under-pinned by continued investment to strengthen our business.

“A strong pipeline of new stores in our targeted European markets, ecommerce momentum, the acquisition to take control of our brand in North America and the opportunity to increase awareness through our global collaboration with Idris Elba provide confidence for continued growth.”

The group expects underlying profits for the full year to be in line with previous guidance at between £60m and £65m.

SuperGroup acquired its North American operations six weeks ago and the integration is going to plan. Sutherland said: “We inherited 15 retail sites and new product will be flowing out to stores over the next few weeks. We are looking to exit a couple of loss-making stores and to reset our wholesale, so it is very early days but everything is looking good so far.”

It is still looking for a partner in China to enter the market through a joint venture but there are no plans to announce as yet.


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