Supergroup sales soar
11 January 2012 10:16
The owner of the Superdry fashion label put previous stock issues behind it today as the retailer reported strong sales in the run up to Christmas. Shares in SuperGroup increased after it revealed like-for-like retail sales were ahead 5.8% in the nine weeks to January 1st and up 9.3% in December.
The group, which owns 72 Cult and Superdry stores and 74 concessions in the UK, was forced to open temporary warehousing after a new system suffered teething problems, leaving many stores with incorrect stock and incomplete size ranges on key products.
The Cheltenham-based firm, which saw its shares slump by more than a quarter in October after it revealed the stock supply issues, saw total group sales, which include its wholesale business, increase 22% over the period to £79 million.
Chief executive Julian Dunkerton said the company had delivered "solid" sales against a challenging economic backdrop, its own distribution issues and "exceptionally" strong Christmas sales in the previous year.
He said: "Our retail business has seen an improving sales trend as our stores became better stocked following the resolution of our warehouse issues and the continued demand for our products and brand."
SuperGroup last month warned its warehouse system blunder would cost the firm nearly £9 million in lost profits.
Mark Photiades, analyst at Singer Capital, said SuperGroup is expected to report pre-tax profits of £53 million in the year to May, compared to £50.2 million the previous year.
He said: "SuperGroup has reported an encouraging Christmas update in retail including like-for-like growth of 9.3% in December against very strong comparatives, highlighting previous stocking issues have been put behind them."
Mr Photiades said he would expect growth to "ramp quickly back up" as new spring and summer ranges start to appear.
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