Fashion specialist SuperGroup’s proposed move into flagship Regent Street premises, revealed by Retail Week last week, divided opinion.
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There have been fears of slowing trade at SuperGroup, which floated last year and owns the Superdry and Cult brands, and its decision to take over Austin Reed’s landmark West End shop prompted worries that the retailer may be over-reaching itself.
Arden analyst Nick Bubb acknowledged nervousness about how the news would be received by investors, but said SuperGroup’s shares looked cheap.
He said: “We are sure the property team has done its sums and the flagship will do the brand justice.” Bubb observed the retailer is trading at 15 times forecast earnings for the financial year just begun and said: “If our forecasts are right, that is a cheap multiple to pay for a group growing its earnings at over 40% a year and with overseas expansion potential.”