UK: SuperGroup confident on FY as Q3 sales soar
SuperGroup has managed to maintain margin gains
Retailer SuperGroup, the owner of the Superdry apparel brand, has recorded an increase in third-quarter revenues and said it is well-placed to meet market expectations for the year.
Sales for the quarter ended 26 January climbed 22.1% to reach GBP141.1m (US$229.9m), the company reported today (6 January).
As a result of focusing on full-price trading during the quarter, SuperGroup said it managed to maintain margin gains achieved during the first half, leaving it well-placed to meet market expectations for the financial year.
Third-quarter retail sales were up 18.2% to GBP113.8m, while like-for-like sales grew 1.3%. Wholesale sales increased 41.7% to GBP27.3m.
"Our strong spring/summer 2014 order book and the positive responses from both the media and our trading partners to the autumn/winter 2014 range presented at the London men's fashion week, give me confidence in the product range going forward and the strength of the brand,"said CEO Julian Dunkerton.
Cantor retail analyst Freddie George said SuperGroup's earnings have picked up momentum after moves to strengthen management.
In June last year, the company appointed Hans Schmitt as its new managing director of international and wholesale, and more recently named Nicole Smith as head of merchandising.
George added: "The company has spruced up and improved its ranges, which are helping to drive wholesale sales, particularly in Europe, and womenswear now has real momentum.
"There is also a great opportunity to drive international sales boosted by the announcement of several deals, including the acquisition of its German agency business for GBP3.5m and the link-ups in Turkey and SE Asia.
"We believe the next step may be the acquisition of the US license. The recent appointment of Schmidt...endorses the international strategy."
SuperGroup's share price was up 2.55% to 1,530 pence at 08:43 GMT today.
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