SuperGroup expects to triple denim sales over the next year after the young fashion business posted another stellar set of results, marred only by supply chain issues.
Chief executive Julian Dunkerton said denim was a “major focus” for the company and that he hoped denim turnover would increase from 5% of total sales to 15% over the next year. He added: “We’re always looking to improve the quality of the denim, the sophistication of the cut and the retail price point.”
This week, SuperGroup announced total sales at the business, which owns the Superdry brand and retailer Cult, jumped 42% year on year to £82m in its second quarter to October 30, up from £58m. However, compared with a 66% jump in the first quarter this represented a slowdown, which was blamed on a warehouse glitch.
During a systems upgrade, the company suffered a reduction in the amount of stock and range of sizes reaching its UK stores. It estimated the issues would hit profits by between £6m and £9m for the full year.
Wholesale operations were unaffected by the problem and sales soared 67% to £42m, up from £25m in the comparable period.
Dunkerton said knitwear, jackets and accessories had performed incredibly well, with mittens “flying out” despite the mild weather.
The retailer said online sales, which only experienced minor disruption, showed “strong trading”.