SuperGroup posts 22.4% jump in H1 revenues
One analyst described SuperGroup's performance as "strong"
Superdry brand owner SuperGroup enjoyed a “strong” first-half driven by higher retail sales, with one analyst forecasting further growth opportunities.
On a preliminary basis, the company said group revenues increased 22.4% to GBP254.9m during the 26 weeks to 24 October. Retail revenue jumped 30.9% to GBP172.2m, with like-for-like sales growing 17.2% year-on-year. Despite the sterling strengthening against the euro, wholesale revenue grew 8% to GBP82.7m. Owned retail space increased by 21.2% year-on-year.
Group gross margin is expected to have strengthened, ahead of guidance for the full year, benefiting from the strong participation of higher margin retail sales.
SuperGroup said it is “making progress” in resetting its North American operation and in the set-up of the China JV with Trendy International Group.
“With a successful first half completed, the business is well placed for the all-important peak season and we remain confident of delivering full year profits in line with our existing guidance, although comparatives throughout the second half are more challenging,” said chief executive Euan Sutherland.
Investec analyst Kate Calvert described the results as “strong, adding: “We see an opportunity to improve UK profitability; potential to double UK and European owned store base; wholesale/franchise growth opportunities in the rest of the world, plus potentially long-term upside from US and China.”
The company has also appointed Tesco executive Nick Tatum as global retail director, with responsibility for the group’s retail operations and logistics. Prior to this, he held various senior leadership roles in store retail operations and commercial category management at the UK retailer.
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