Fashion specialist SuperGroup has reported a rise in full-year profits and revealed plans to launch in China.
- Profits advance 2% to £63.2m
- Current financial year off to a strong start as like-for-likes rise 20.3%
- Supergroup has formed a joint venture with Chinese business Trendy International Group
SuperGroup has reported a rise in full-year profits and revealed plans to launch in China.
The retailer, owner of the Superdry brand, reported a 2% rise in underlying profits to £63.2m in the year to April 25, when group sales climbed 12.9% to £486.6m.
Like-for-like revenues advanced 4.8% in the year and group gross margin was ahead by 120 basis points.
SuperGroup described the year as “a game of two halves” after mild weather last autumn undermined first-half performance, but changes made in the business – including at management level – took effect.
In the first 10 weeks of the current financial year retail sales rose 34.5% on the back of store openings and like-for-likes soared 20.3% against weak comparatives.
International expansion is seen by SuperGroup’s directors as a key driver of future growth and the retailer is teaming up with Chinese business Trendy International Group to launch in China.
SuperGroup and Trendy have agreed to create a 50:50 joint venture with a combined investment of £18m.
Trendy will run the Chinese business day-to-day while SuperGroup will provide “strategic brand support, design services and marketing”.
SuperGroup chief executive Euan Sutherland said: “China is a very exciting market and forecast to overtake the US as the largest apparel and footwear market in the world.
“Customer tastes are evolving from luxury brands to brands influenced by pop culture and we believe that the Superdry brand, with the right product, pricing model and infrastructure, is well positioned to be successful.
“The most appropriate model for us to enter this market is to join forces with an established Chinese company.”
SuperGroup already has overseas businesses in regions ranging from North America to Europe.