6th Feb 2014 10:19
LONDON (Alliance News) - Shares in Supergroup PLC were on the rise Thursday morning, after the Superdry clothing-store chain owner reported another set of impressive trading results for the third quarter, with group sales rising 22% in the period, and said it is well placed to meet market expectations for the full year.
The group said it is on track to reach forecasts for full-year pretax profit between GBP61.1 million and GBP65.9 million for the financial year ending April 26.
The clothing retailer said total group sales for the 13-week period to January 26 increased by 22% to GBP141.1 million, while in the year to date sales are up 22% to GBP333.2 million
It said the margin gains achieved during the fist half of the year were maintained in the third quarter, as it continued to focus on full-price trading to optimise profitability.
Supergroup said sales in its retail division were up 18% at GBP113.8 million in the 13-week period, and have grown by 19% to GBP230.7 million in the year to date.
"A cleaner stock position meant the Group did not need to repeat the eBay clearance activity of last Christmas which, whilst suppressing top line sales this year, has helped to support margins," the company said in its latest trading update.
Nine standalone stores were opened during the quarter, the group said, two stores were relocated and, following the acquisition of the German agency operation, seven stores were transferred from franchised to owned stores.
The group said it has a number of stores scheduled to open during the fourth quarter, and it is likely to deliver around 100,000 square feet if new space for the full year.
In its wholesale division, Supergroup said sales for the 13-week period increased 42% on the period year to GBP27.3 million. In the year to date, sales have increased by 29% to GBP102.4 million.
"The significant growth during the quarter reflects a high proportion of spring/summer despatches being made earlier than the comparable period last year," it said.
During the third quarter, the group opened 14 franchised stores and closed three, as well as the seven stores transferred into the retail estate.
"All infrastructure projects are running to plan, in particular the new Distribution Centre is already playing a significant role in the delivery of spring/summer products," said Chief Executive Officer Julian Dunkerton in a statement.
Dunkerton also said he is confident in Superdry's autumn/winter 2014 product range.
Shares in Supergroup were trading 7.0% higher Thursday morning at 1,596.40 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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