There were no surprises from SuperGroup Wednesday as the seemingly unstoppable company had another good quarter. As is the expected norm, the UK-based fashion …
The name behind the successful Superdry brand said total sales for the 15 weeks to April 25 soared 18.4% to £134.8m ($207.6m) as same-store sales rose an impressive 11.6%. E-commerce revenue, meanwhile, leapfrogged both those figures with a 39.5% power jump.
Total group revenues reached £484.7m for the full-year, easily above analysts’ predictions of a £479.1m final tally.
SuperGroup still expects the full-year underlying profit of £60m-£65m it predicted earlier, which is pretty impressive in the circumstances. Like many other retailers, it reports in GBP in the face of a weakening euro and it’s also dealing with the loss to administration of one of its wholesale customers, Bank Fashion, that’s expected to hit its bottom line in H2.
So how will it maintain that level of profitability? Gross margin for the year is expected to improve, benefiting from its favourable channel mix, although the potential for improvement will be dented by the impact of currency movements.
New stores and even more online growth will be key. “A strong pipeline of new stores in our targeted European markets, e-commerce momentum, the acquisition to take control of our brand in North America and the opportunity to increase awareness through our global collaboration with [actor] Idris Elba provide confidence for continued growth,” said CEO Euan Sutherland.