SuperGroup reports 25.2 percent revenues growth in H1
For the 26 weeks to October 28, 2017, SuperGroup, owner of the Superdry brand said that global brand revenue increased by 25.2 percent to 756.3 million pounds (994 million dollars), benefitting from continued strong growth across all channels. Reported group revenues increased by 20.4 percent in the half to 402 million pounds (528 million dollars), including an approximate 12 million pounds (15 million dollars) benefit from the impact of foreign exchange, the majority of which fell in the first quarter.
Commenting on Superdry's performance Euan Sutherland, Chief Executive Officer, said in a media statement: "We have delivered another strong performance in this half, further demonstrating the unique advantages and attractiveness of Superdry as a global digital brand. Our growth has further diversified the brand, both geographically and across channels, which serves to insulate the business from trading conditions in any single market.”
Highlights of SuperGroup’s first half results
Wholesales revenue grew 34.1 percent, while total retail revenues increased by 12.8 percent year on year, led by ecommerce revenue that grew by 31.6 percent, and included like-for-like revenue growth of 6.3 percent. The company said new and non-annualised retail space contributed 6.8 percent sales growth over the period.
The company added that its Superdry brand continued to strengthen its brand presence with two fully integrated digital marketing campaigns, The Night is Young and This is My City. Also, the company added that expansion continued during the period across each of Superdry's eight channels to market. Through 37 franchise stores and 13 owned stores, 50 dedicated Superdry stores were added to the portfolio in the period across 23 different countries.
Full year gross margin expected to decline
Gross margin in the period, SuperGroup said, is anticipated to decline year-on-year by approximately 170bps, primarily reflecting the strong participation of wholesale sales impact by input inflation not passed on to consumers and investments made to reduce the overall level of inventory, partially offset by not repeating promotional mechanics trialled in 2016.
The Board anticipates that underlying full year profit before taxation will be in line with market expectations and that half year underlying profit, after distribution centre migration costs and development market investment, will be in the range of 25- 26 million pounds (32 to 34 million dollars).