SuperGroup has been the retail sector’s share price superstar ever since it floated in March.

SuperGroup has been the retail sector’s share price superstar ever since it floated in March.

The IPO price was just a fiver. Since then it has been up all the way for the owner of the ultra-trendy Superdry brand. The retailer posts interim results next Wednesday and this week it was trading at £15.83.

Run by the mercurial Julian Dunkerton, a casual dresser who takes a far from casual attitude to building the business he originally launched from a market stall, SuperGroup is one of the biggest success stories in fashion retail.

There is plenty to admire about SuperGroup so it seems churlish to spoil the party, but surely the stellar rise of its stock cannot go on indefinitely.

Execution Noble is among those that think so and has a sell recommendation on the stock. As the broker points out, “the current share price is factoring flawless execution into the medium term and none of the risks associated with a rapidly evolving young fashion brand”.

The must-have appeal of SuperGroup’s togs is reflected in landlords’ willingness to offer mouth-watering incentives to get the retailer on their rosters of high streets and malls.

It’s good news for SuperGroup, especially at this vital stage of growth, but at some point the property boys’ concessions will evaporate and, as openings continue apace, there is the accompanying risk of overexpansion.

SuperGroup has not put a foot wrong so far, nor are there any sign of a loss of commercial or fashion focus. Investors who bought in to the IPO have been rewarded and the brand looks as if it has plenty of legs.

But while momentum seems assured for the foreseeable future, it’s simply the way of the world that what goes up must come down. The question is where the share price tipping point lies. Has it further to climb or run far enough already?

Read Retail Week Knowledge Bank’s new SuperGroup profile at