SuperGroup’s full-year figures showed “a return to form”, maintained founder and chief executive Julian Dunkerton as he unveiled a rise in profits and sales.
Supergroup’s full-year figures showed “a return to form”, maintained founder and chief executive Julian Dunkerton as he unveiled a rise in profits and sales.
Decisive action has been taken to put the business on track and the City seems increasingly convinced of SuperGroup’s appeal. And it is the retailer’s global potential that’s whetting investors’ appetites.
The retailer’s overseas growth strategy looks sound and has much in common with other retailers that have successfully built international operations of scale.
In Western Europe SuperGroup aims to buy out master franchisees, which is expected to enable faster store opening programmes and enhance earnings. At the same time, franchising will remain the main route into other markets such as India and Latin America.
Broker Canacord Genuity anticipates that international sales will account for more than half the group total by 2018, and notes that the retailer can charge a 20% premium to UK prices overseas.
Investors originally bought into SuperGroup as an odds-on favourite, but it stumbled at a few fences. The retailer does now look, as Dunkerton says, on form.
Kingfisher on a high
As DIY giant Kingfisher prepares to release its second-quarter update, its shares have, despite tough conditions taking a toll on flagship business B&Q, been trading at a 12-year high.
Investors, says one Kingfisher fan, have been looking past short-term concerns and banking on a housing market improvement that Kingfisher will be perfectly placed to benefit from. The situation mirrors the attitude of US investors to retailers such as Home Depot.
Happy days may not quite be here again for DIY groups, but changes made at Kingfisher by chief executive Ian Cheshire mean it is in a good state of repair for any uptick in the wider economy.