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."
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