SuperGroup second-quarter sales soar - UPDATE

- Q2 total sales up 18.5 per cent- Underlying store sales rise 7.8 per centSuperGroup, the owner of the Superdry fashion brand, has delivered another stellar quarter of sales growth.The retailer said total sales for the 13 weeks to October 27th had leapt by 18.5% to £116.6m, meeting management expectations.At its retail arm underlying sales for the second quarter were up 7.8%, slowing slightly on the 8.1% growth for the half year. Total retail sales leapt 20% in the three months to £63.5m. The group now operates 113 stores after opening three new stores in the UK in the quarter, buying two third-party franchise outlets and opening two shops in Continental Europe. Its wholesale business also had a strong quarter with sales rising 16.7% to £53.1m and with 21 franchised stores opened in the three months including new sites in Austria, Denmark, Turkey and India. Chief Executive and co-founder Julian Dunkerton said: "We have delivered another strong trading performance, which has seen good sales growth in both the retail and wholesale divisions." Online overseas sales have also been booming. Dunkerton said: "E-commerce sales from Europe and the rest of the world have now overtaken those from the UK reinforcing our view of the international appeal of the Superdry brand."Broker Canaccord Genuity said sales growth was ahead of its previous expectation of 16.5% and this alone led to a 2% upgrade to full year profit forecasts to £61.1m, with the opportunity for further upgrades during the year from continued strong trading and the delivery of cost savings from a new warehouse."The ability to achieve such strong organic rates of growth should provide confidence in the strength of the Superdry brand. Coupled with E-commerce sales from Europe and RoW now larger than those from the UK, reinforces the international appeal of the Superdry brand in our view." The acquisition of its German partner announced today provides the foundations for international growth to accelerate. "With only circa 56,000 square feet of owned retail space in EU, we forecast a 44% compound annual growth rate 2013-18. Estate expansion remains on track: The UK retail square footage has increased 6% YTD, EU has risen 19% and 31 franchised stores have opened YTD." Shares in SuperGroup were up 1.1% at 1,219.5p at 12:52 on Thursday.TB