SuperGroup Share News (SGP)

(ShareCast News) - Supergroup shares surged on Thursday after the FTSE 250 owner of clothing brand Superdry reported a bigger-than-expected jump in first-half revenue and said it expects full-year profit to be in line with market expectations of £84.6m.In a trading update for the 26-week period to 29 October, the group said revenues were up 31.1% to £334m, as the weaker pound accounted for about one third of the reported growth in each of Supergroup's operating divisions. Analysts had been expecting sales of around £292m.Retail revenue was up 25% to £215.2m, with particular growth in e-commerce, while wholesale revenue rose 43.8% to £118.8m, benefitting from investments made in the prior year to strengthen the group's capability in this division. However, Supergroup said gross margin in the period is expected to decline year-on-year by around 130 basis points, mostly due to the strong participation of relatively lower margin wholesale sales. The company added 67,000 square feet to the own store portfolio, increasing the brand's average retail space by 19% year-on-year. During the half year, it opened 12 owned stores, all outside the UK.In addition, Supergroup successfully opened new distribution facilities in Europe and the US, which will operate as planned throughout peak trading and remain on track to be fully operational in 2017. Chief executive officer Euan Sutherland said: "This is another good performance particularly when set against last year's strong first half trading. Our new product ranges continue to perform well and during the second quarter our continuity ranges provided trading resilience when the weather across Europe was unseasonably warm."Our focus remains on executing the clear growth opportunities for the Superdry brand, together with key third quarter trading period ahead of us. The long-term opportunity for the brand is underpinned by continued investment in infrastructure and our multi-channel strategy that combines the ongoing development of our e-commerce platform with a disciplined approach to new space growth."Supergroup said it now expects pre-tax profit for the first half to be in a range of between £20m and £22m, compared to £19.3m the year before. Canaccord Genuity said: "Supergroup has broken the mould of downbeat trading updates from the majority of other clothing retailers with a stellar sales performance in H1."Meanwhile, RBC Capital Markets reiterated its 'outperform' rating on the stock. For the first half, it expects pre-tax profit of £21.6m versus consensus of £21.3m, with £86.8m for the full year versus consensus of £84.6m.At 1000 GMT, the shares were up 11.4% to 1,612p.