• H1 pre-tax profit down 30%
  • Gross margin up 220 bps
  • Revenues grow 8.4%
SuperGroup said trading in the first half has been “disappointing”

SuperGroup said trading in the first half has been “disappointing”

Superdry brand owner SuperGroup has revealed first-half earnings that came in below analyst expectations but has reiterated its full-year profit guidance.

In the six months ended 25 October, underlying pre-tax profits declined by 30% to GBP12.5m (US$19.6m) before taking into account a GBP2m mangement restructuring charge. This compared to Cantor Fitzgerald Research estimates of GBP16.2m.

Group gross margin, however, was up 220 basis points to 59%, while revenues grew 8.4% to GBP208.2m.

The company said that while trading in the first half has been "disappointing", the vast majority of profits have historically been generated in the second half.

CEO Euan Sutherland, said: "I have identified that there are some parts of our operations that we can improve. I am reviewing every aspect of the business, including the execution of our strategy, cost management and capital allocation and will report our conclusions in the spring. We are well prepared for the important peak season and remain on track to deliver profits within guidance."

The company reiterated its full-year pre-tax profit guidance of GBP60m to GBP65m.

Anusha Couttigane, senior consultant at Conlumino, said: "Weather woes have targeted a number of fashion retailers and SuperGroup, as a business that has yet to reach maturity, is still refining its strategy for responding to the issue. Mostly, this is a matter of getting the product mix right."