4th Sep 2014 06:56
LONDON (Alliance News) - SuperGroup PLC said Thursday it remains on track to deliver profitable growth in the full year as it posted a rise in group revenue in the first quarter of its fiscal year, with positive performances from its wholesale and retail arms and a gradual improvement in like-for-like retail sales against strong comparatives.
The owner of the Superdry brand said group revenue for the period between April 27 and July 26 hit GBP87 million, up 16% from the GBP75.1 million posted a year earlier.
Retail revenue rose 14% in the period to GBP60.4 million, against GBP53.2 million a year ago. Like-for-like retail sales were down, as the group had anticipated, by 3.7% against a strong comparative for the first quarter of last year, when sales increased 8.5%. It said like-for-like performance has continued to be held back by the same issues cited in its fourth quarter, including shortages for key summer lines and a competitive market.
It said, however, it has seen an improvement in the first five weeks of its fiscal second quarter, with like-for-like sales looking stronger amid the transition to autumn/winter ranges. It said like-for-like sales in the first 18 weeks of the financial year to September 1 are down 1%, against a rise of 7.9% a year earlier.
The group's new store openings in the period have focused predominantly on mainland Europe, with a net 13,000 square feet added to its store portfolio. That compares to 1,000 square foot added in the first quarter last year. Among the openings was a large-format store in Marseille, France and a smaller store in the Alpine resort of Kitzbuhel, Austria.
Wholesale revenue was up 22% in the period to GBP26.6 million, from GBP21.8 million a year earlier. SuperGroup said the order book for the autumn/winter 2014/15 season has now closed and the initial indications are that orders increased 10% against high comparatives for a year earlier and are in line with its expectations. The rise would mark the fourth consecutive season of double-digit wholesale growth, with overseas orders outperforming the mature UK market, the company said.
"With our strong pipeline of new stores, particularly in mainland Europe, the continued evolution of the ranges and our improved infrastructure we remain confident that we have the platform to deliver profitable growth in the current year," said Julian Dunkerton, Chief Executive of SuperGroup.
By Sam Unsted; [email protected]; @SamUAtAlliance
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