Supergroup reports "disappointing" fourth quarter

UK: Supergroup reports "disappointing" fourth quarter

By Petah Marian | 10 May 2012

Supergroup recorded flat like-for-like sales over its fourth quarter, with CEO Julian Dunkerton admitting the quarter has been a "disappointing end to a challenging year".

The owner of the Superdry brand revealed today (10 May) that sales for the quarter ended 29 April grew 14.1% to GBP75.2m (US$121.4m) over the same period last year.

Retail sales grew 24.7% to GBP39.4m. The company said its online performance continues to be strong, but the challenging retail environment has seen a slow-down in sales from stand-alone stores and concessions.

Wholesale revenue grew 4.4% to GBP35.8m, with underlying growth at around 9% before adjusting for currency fluctuations. The slowdown in growth in the wholesale business has been impacted by the acquisition of Supergroup Europe and the continued expansion of the UK retail business, which has hit wholesale sales in the UK.

Full-year sales grew 31.9% to GBP313.8m, while retail sales were up 29.6% to GBP191m and wholesale revenue increased 35.7% to GBP90.5m.

"Although the fourth quarter has been a disappointing end to a challenging year, the brand remains strong and this, together with the Group's investments in key senior personnel and system infrastructure, provides a solid platform for the coming financial year," said Dunkerton.

Sectors: Apparel, Finance, Retail