LONDON (Alliance News) - SuperGroup PLC Wednesday reported growth in sales for the fourth quarter of its financial year and in the full year as a whole and said it expects its underlying profit for the year to meet previous guidance.
Shares in SuperGroup were up 7.1% at 1,068.00 pence late Wednesday morning, the top FTSE 250 gainer.
The retailer reported revenue for the 15 weeks to April 25 of GBP134.8 million, up from GBP113.8 million in the same period the year before, while revenue for the full financial year grew 12% to GBP484.7 million from GBP430.9 million.
SuperGroup said the strong performance within its retail division was sustained following promotional activity in the third quarter to clear excess seasonal stock from the autumn, while also benefiting from softer comparatives.
Gross margin in the year is also expected to have improved marginally, benefiting from the acquisition of a number of European agents in the previous financial year, and a sales mix to higher margin countries and channels.
However, second half margins are anticipated to have declined slightly year-on-year as a result of the third-quarter clearance activity and unfavourable currency movements.
SuperGroup said it expects its full-year underlying profit to remain in line with previous guidance of between GBP60 million and GBP65 million.
Meanwhile, analysts are confident of overseas opportunities for the group. Its purchase of the US licence in March should be positive for its balance sheet, according to Cantor analyst Freddie George.
SuperGroup said its operations in the US are progressing well in the five weeks since the acquisition, having inherited 15 retail sites and planning to exit a couple of loss-making stores. A launch in China is also "on the radar", it said.
"The group traded robustly throughout the final quarter. Our focus remains on the creation of a global lifestyle brand, through the extension of the Superdry brand and execution of clear retail growth opportunities, under-pinned by continued investment to strengthen our business," Chief Executive Euan Sutherland said in a statement.
"A strong pipeline of new stores in our targeted European markets, e-commerce momentum, the acquisition to take control of our brand in North America and the opportunity to increase awareness through our global collaboration with Idris Elba provide confidence for continued growth," he added.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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