Supergroup generated a like-for-like sales surge of 10.6% in its third quarter to January 27, signalling a recovery from its warehousing and accounting issues last year. Retail Week looks at what the analysts think.

“Looking ahead, the positive momentum should be maintained in the fourth quarter. The current quarter is now up against relatively easy comparatives, the new ranges have been well received as evidenced by the third quarter retail like-for-like figure and the strong wholesale order book and several of the company’s competitors, including Republic, are reported to be closing down stores. This update should represent a turning point in the company’s fortunes. We believe that after a year of consolidation, the company has now established a platform in terms of infrastructure and management to push ahead in developing the brand on a multi-channel and overseas basis” - Freddie George, Seymour Pierce

“We still have reservations about the business model and the way that sales growth has historically been pursued in advance of investment in the infrastructure to support that growth. And questions remain for us as to how and when the need for further investment might materialise. The business does, however, appear to have stabilised and this should be taken positively by the market” - Sanjay Vidyarthi, Espirito Santo

“A 20% leap in the spring/summer wholesale order book illustrates renewed confidence in the brand and a marked improvement in ranges, particularly in womenswear. Gross margin performance is benefiting from a lack of distress clearance. Both factors underpin upgrades to our forecast expectations, with consensus and PHe estimates expected to settle at c£51m for 2013E” - John Stevenson, Peel Hunt

“We have raised our pre-tax profit forecasts for SuperGroup following a good Christmas trading update this morning.  We believe SuperGroup remains an attractive story for four main reasons: 1) the strengthening of the management team is driving better execution 2) Superdry is a differentiated brand benefiting from rising brand awareness, 3) SuperGroup offers an attractive space growth story, both in the UK and internationally, complemented by a successful online strategy, 4) valuation  remains undemanding for double-digit top and bottom line growth, in our view.” - Aurelie Caspar, Bank of America Merrill Lynch

The group has opened a further five stores during third quarter and encouragingly this is weighted in favour of large European cities as opposed to the UK. This could represent the start of step change towards its European expansion, which in our view, will be an increasingly important driver of growth over the next few years.” - Wayne Brown, Canaccord