SuperGroup reports challenging first half as profits fall 31%

For the 26 weeks to October 25, underlying profit before tax fell to £12.5m. Group sales were up 8.4% to £208.2m.

Retail sales were up 12.5%, while like-for-likes were down 4.1%. Full-price internet sales were up 15.9% and wholesale sales were up 2%.

SuperGroup said that while trading in the first half had been disappointing, the vast majority of its profits have historically been generated in the second half. It said it took the expected impact of the first half and its likely ramifications for the year into account in October, guiding that full-year profit would be between £60m and £65m.

SuperGroup chief executive Euan Sutherland said: “SuperGroup is an exciting business with a strong brand and significant growth opportunities which, during this period, has suffered from widely publicised external factors. Additionally, I have identified that there are some parts of our operations that we can improve. I am reviewing every aspect of the business, including the execution of our strategy, cost management and capital allocation and will report our conclusions in the spring.

“We are well prepared for the important peak season and remain on track to deliver profits within guidance.”