SuperGroup has posted full-year pre-tax profits up 18.8% to £62m. Retail Week takes a look at what the analysts say about the fashion retailer.

Full-year 2014 was another busy year with SuperGroup delivering a pleasing 19% growth in pre-tax profit at the same time as successfully transitioning to a new distribution centre and making a major investment in upgrading core infrastructure systems. The long-term growth story is very much intact with material opportunity to extend the brand’s global reach – Kate Calvert, Investec

Overall, the latest financial year was a good one for SuperGroup with some respectable growth coming from both the retail and wholesale sides of the business.

“One of the main issues with a directional label like Superdry is that as growth occurs the brand loses some of the appeal that was originally part of its exclusivity and novelty”

Neil Saunders, Conlumino

However, there is no denying that growth, especially in terms of like-for-like sales, has slowed. This is likely, in some quarters, to throw a question mark over the sustainability of the brand.

One of the main issues with a directional label like Superdry is that as growth occurs the brand loses some of the appeal that was originally part of its exclusivity and novelty. With the continued expansion we do believe that this is starting to have an impact and is eroding spend, at least at the margins, from some customers. It is important to stress, however, that SuperGroup is not at the mercy of this trend and there are things it can do – and indeed is doing – to remedy this problem – Neil Saunders, Conlumino

Record results from SuperGroup, with profit before tax up 18.8% to £62.0m, in line with expectations. Following a year of substantial systems and operational investment, much of the heavy lifting has been done, on time and within budget.

With the focus now back onto expansion, largely international and online, we see scope for significant medium-term growth – John Stevenson, Peel Hunt

We still believe the company has a great opportunity to develop its online sales and overseas business, with focus at present being Germany. The company has a strong balance sheet, a cash balance forecast at over £80m at the end of full-year 2014 and is likely to start paying dividends over the next three years – Freddie George, Cantor Fitzgerald