UK: Supergroup "on track" after Q4 sales growth
- Q4 sales up 12.4% to GBP97.8m
- Retail sales rise 13.3% to GBP54.6m
- Like-for-like sales down 3.1%
Group revenues increased 12.4% to GBP97.8m during the fourth quarter
UK fashion retailer Supergroup is on the "right track", says one analyst, after booking a double-digit increase in fourth-quarter sales, but "challenges remain".
The owner of the Superdry brand today (8 May) said group revenues increased 12.4% to GBP97.8m (US$165.9m) for the 13 weeks to 26 April, compared to GBP87.1m in the same period last year.
Retail sales were up 13.3% to GBP54.6m, while like-for-like sales were down 3.1%, affected by the late Easter and product mix. Wholesale revenues grew 11.2% to GBP43.2m during the period.
''We have delivered a solid performance over the past year whilst managing a smooth transition to our new distribution centre and the implementation of the merchandising management system," said CEO Julian Dunkerton.
He added that the reaction to its autumn/winter 2015 collections is encouraging. "The strength of the Superdry brand and the investment we have made in our teams leaves me confident in our ability to deliver the growth strategy."
During the full year, group sales jumped 19.6% to GBP431m from GBP360.4m. Retail sales grew 17.7% to GBP285.4m, and wholesale revenues increased 23.5% to GBP145.6m.
Commenting on the group's performance, Conlumino analyst Greg Bromley said: "Overall this set of results indicates that SuperGroup is on the right track, although there will likely be further challenges ahead.
"Its like-for-like decline in this quarter indicates that no fashion brand is infallible, regardless of its current popularity. Its major challenge will be to keep up a level of momentum going forward, with product diversification and European expansion looking like the most fruitful route to future gains."
Supergroup's share price fell 14.3% to GBP1,209 pence at 09:53 BST this morning.
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