Super-charged SuperGroup sees year-end sales, earnings leap
SuperGroup should upgrade its name to MegaSuperGroup. There’s no holding back the UK company, owner of the casualwear favourite SuperDry, judging by its year-end figures delivered Thursday morning.
Group revenues for the 12 months to April 29 rocketed 27.2% to £750.6m, albeit boosted by positive currency effects. But those all-important same-store sales also impressed, up 12.7%, helped by a 35% leap in online sales.
Expect full-year pre-tax profit of £86m-£87m, in line with earlier guidance, it said. That’s up from £73.5m a year ago.
There was a flourish to its final quarter performance, too, where comp sales rose 9.4%. OK, that was down on Q3, and its shares opened Thursday down 4.5%, but a near-10% rise is an impressive number that many of its struggling high street peers must envy.
It also ended the fiscal year with 555 Superdry stores, up from 475 a year ago, operating 1m sq ft of owned trading space in H2.
The company also noted North America and China ops continued to perform in line with their respective plans. In the US, the benefit of continued strong e-commerce growth, improving comp store performances and an encouraging new store performance has led to a break-even position for the year, in line with guidance, it said.
So what about the wholesale channel? Full-year revenues surge 42.9%, benefiting from a renewed focus on the channel “with improved service levels driving sales with existing customers and franchise expansion and product innovation introducing new customers to the brand.”
Any negatives? Although H2 gross margin was broadly flat on a year ago, the full year will see a decline in the range of 120 bps to 140 bps. It cited the impact of foreign exchange rates and the strength of wholesale that grew faster than retail.
A usually understated CEO Euan Sutherland didn’t disappoint, calling fiscal 2017 “another good year of sales and profit growth.”
He added: “This has been achieved by improving our product ranges and introducing new categories to excite, inspire and maintain the brand’s relevance while, in parallel, investing in our development markets and improving our infrastructure.
“With a clear strategy and a number of long term opportunities to establish Superdry as a global lifestyle brand we remain confident in the continued delivery of sustainable revenue and profit growth.”