UK: SuperGroup records strong FY ahead of consensus
- FY pre-tax profit up 18.8%
- Gross margin up 140 bps
- Revenues climb 19.6%
Conlumino said the latest financial year was a good one for SuperGroup
UK fashion retailer Supergroup, owner of the Superdry brand, has booked what it says was a strong financial performance for its full-year, which came in marginally ahead of market consensus.
Pre-tax profits to the end of April were up 18.8% to GBP62m (US$77.9m). This compared to Cantor Fitzgerald estimates of 17.8% growth to GBP61.5m, and a Bloomberg consensus of GBP61.7m.
Group gross margin was up 140 basis points to 59.7%, reflecting lower clearance activity, the increasing mix of international business, and the benefits of increasing scale and purchasing power.
Revenues climbed 19.6% to GBP430.9m, while like-for-like sales grew 3.2%.
Neil Saunders, managing director of Conlumino, said the latest financial year was a good one for SuperGroup, with some respectable growth coming from both the retail and wholesale sides of the business.
However, he added: "There is no denying that growth, especially in terms of like-for-like sales, has slowed. This is likely, in some quarters, to throw a question mark over the sustainability of the brand."
SuperGroup CEO Julian Dunkerton, meanwhile, said that with a strong pipeline of new stores, particularly in mainland Europe, the company is well positioned for further profitable growth in the year ahead.
"The strength of the Superdry brand and the investment we have made in our business leaves me confident in our ability to implement and deliver the growth strategy."
Cantor Fitzgerald analyst Freddie George concurred: "We believe the company has a great opportunity to develop its on-line sales and overseas, with focus at present being Germany. The company has a strong balance sheet, a cash balance forecast at over GBP80m at the end of FY14 and is likely to start paying dividends over the next three years."
- Improved supplier capabilities benefit Next
- THE FLANARANT: Understand win-win or lose out
- China and Vietnam lead US apparel imports in July
- Next H1: What the analysts say
- Abercrombie & Fitch to lose logos in fashion focus
- Brandix selects first "game-changing" innovations
- H&M goes green with Conscious Denim
- TPP talks "make progress" but issues remain
- Bagir to invest in Ethiopia as H1 loss deepens
- US cotton production set to decline
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details