SuperGroup posted a strong set of results this morning, recording a 22% hike in underlying pre-tax profit to £52.2m in the year to April 28. Retail Week finds out if the results have impressed the City.
“We see the internationalisation of the group’s estate coupled with rising margins and organisational change as the key drivers moving forward. The increased focus on estate growth and online sales internationally will shift Supergroup’s main markets away from the UK and account for more than 50% of group sales by 2018E. This will not only drive premium growth rates but as these markets generate a gross margin some 20bps higher than the UK, will increase margins. The enhanced management team have delivered significant improvements to the supply chain and higher productivity levels in-store. When combined with the expected savings from the new IT systems and distribution centre coupled with the dynamic enhancements to the ranges, we have a high degree of confidence in the group’s ability to deliver on its high growth aspirations.” – Wayne Brown, Canaccord Genuity
“Today’s finals are a key step in SuperGroup’s aim to be taken seriously and settle down after all its problems and the statement is suitably sober and grown-up, but it reads well and the outlook section says that “trading in the first nine weeks of the new financial year has been encouraging”. Underlying profit before tax recovered by 22% to £52m and the new divisional split shows that progress was led by retail rather than wholesale” – Nick Bubb, independent
“This has been a year of big changes behind the doors of SuperGroup. A new womenswear collection, a new management team and 71 new locations have been the major highlights, giving the owner of teen fashion favourite Superdry a satisfying end to the year. Whilst sales slowed down towards the close of the period, this has not severely impacted full year results, with the retailer bringing in revenues of £360.4m, up 14.9% from 2012. In addition, although retail sales showed signs of decelerating in the group’s last statement, its external UK revenue of £236m indicates that SuperGroup’s main domestic market is still critical to propping up the rest of the business.” – Anusha Couttigane, Conlumino
“Trading over the first nine weeks of FY14 has been encouraging, with positive reactions to the new spring/summer ranges with womenswear seeing a marked improvement following the work done in this area to improve the offer. FY13 was a year of consolidation following the disappointments of FY12. The strengthened management team has taken control of the business and has improved important practices across key areas. Credibility has improved and investor appetite has returned with the focus turning back to the growth potential of this young brand.” – Matthew McEachran, N+1 Singer