SuperGroup posts 31.1 percent revenue growth in H1

SuperGroup revenues for the half year increased by 31.1 percent to 334 million pounds (414 million dollars). The company said, buoyant results reflected the brand's global footprint, benefits from sterling's weakness with the impact of currency changes accounting for approximately one third of the reported growth in each of the Group's operating divisions.

Commenting on SuperGroup's performance Euan Sutherland, Chief Executive Officer, said in a statement, "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.”

Financial highlights of the first half

Within retail, the company said, positive sales momentum from FY16 and in particular the growth in e-commerce, continued consistently throughout the first two quarters with total sales growth of 25 percent and like-for-like sales growth of 12.8 percent. Wholesale revenue increased by 43.8 percent.

SuperGroup expects gross margin in the period to decline year-on-year by approximately 130bps reflecting the strong participation of relatively lower margin wholesale sales. The company opened 12 owned stores, all outside the UK. The net addition of 67,000 sq. ft. increased the brand's average retail space by 19 percent year-on-year. The Group also opened new distribution facilities in Europe and the USA.

The Board anticipates that full year profit will be in line with market expectation and that the half year profit, after distribution centre migration costs and development market investment referred to above, will be in the range of 20million pounds to 22 million pounds (24 to 27 million dollars).

Picture:Superdry