As young fashion business SuperGroup reports a 14.7% fall in underlying pre-tax profits as well as announcing that it was to axe its Cult fascia in favour of Superdry stores before Christmas, Drapers takes a look at what city analysts make of the results.
Singer Capital Markets analyst Matthew McEachran said that the results were “broadly in line with expectations” and similar to what was seen at the end of the last quarter.
“Management appear comfortable with the current consensus profit before tax figure of £49.5m at this stage and so we do not expect any major changes to consensus estimates,” he said.
“We will be looking for a strong presentation from the new team today which will hopefully form the start of the process to rebuild investor confidence and sentiment in the investment case.”
Independent analyst Nick Bubb agrees that the full-year results appear to be in line with expectations.
“Today is an important first step in the onerous task of rebuilding management credibility, after the disasters of the last year or so,” he said.
Oriel Securities analyst John Pritchard added: “A year of profit warnings and running too fast has come to an end.
“The April 20th update gave us strong hints regarding profitability, so there were few surprises in the numbers, but the retail gross margin was a shade ahead of our forecast.
“Management accepts that the profits shortfall in 2011/12 was down to a number of own goals, but of more importance is the rhetoric regarding the future.”