SuperGroup records 'solid' full-year performance as it eyes European expansion

The fashion retailer revealed in the year to April 26 that underlying pre-tax profit increased 18.8% to £62m and sales soared 19.6% to £430.9m.

Retail sales increased 17.7% and like-for-likes jumped 3.2%, while wholesale sales advanced 23.3%.

SuperGroup added that gross margin increased 140 basis points to 59.7%

SuperGroup chief executive Julian Dunkerton said: ”We have delivered a solid performance over the past year, with profits up 19%, whilst managing the transition to our new distribution centre and the implementation of the merchandising management system.

“With a strong pipeline of new stores, particularly in mainland Europe, we are well positioned for further profitable growth in the year ahead. The strength of the Superdry brand and the investment we have made in our business leaves me confident in our ability to implement and deliver the growth strategy.”

In the year SuperGroup, which has 96 UK stores, increased trading space 18%, opening large-format stores in Amsterdam, Paris, Bruges and Marseille. It now trades from 633,000 sq ft in the UK and Europe.

SuperGroup bought out its German and Spanish agency operations in the period. In Germany it also acquired seven franchise stores, enabling the group to open its own retail stores and in Spain it also opened 10 concessons in the El Corte Inglés department store chain.

It also launched websites in America and China. The group now operates 18 websites in 15 countries.

SuperGroup opened a new central warehouse in Burton-upon-Trent and implemented a new merchandise management system and HR and payroll system, while a new point of sale system is currently being rolled out across its store estate. Since year-end SuperGroup has acquired its Scandinavian distributor SMAC Group.

SuperGroup said it incurred £9.1m of exceptional items relating to the new warehouse and its deals in Germany and Spain.

Chairman Peter Bamford said: “International growth opportunities will provide the major sources of expansion for the group. Whilst the growth opportunities are wide-ranging, the challenges for SuperGroup are to ensure that the attractiveness of the Superdry brand for its customers is maintained and that high-quality execution is sustained as the business expands and develops. Continual improvement and innovation in its product ranges is crucial in ensuring that we deliver the expected returns to shareholders.”