SuperGroup revenues for the full year increased by 27.2 percent to 750.6 million pounds (971 million dollars). As reported at the half- year results, the company said that the brand’s global footprint has led to revenues benefitting from sterling’s weakness. The company added that full year like-for-like growth of 12.7 percent benefitted from the continuing growth of group’s differentiated e-commerce channel, which delivered year-on-year growth of 35 percent.
Elaborating on the company’s full year trading, Euan Sutherland, Chief Executive Officer, said in a media release, “We remain focused on the consistent execution of the strategy outlined in early 2015. This global multi-channel growth strategy balances opening stores, developing new wholesale partners and driving our strong e-commerce proposition to expand the reach of the brand and further diversify our business model.”
Retail LFL sales up 9.4 percent
Within retail, the strong positive sales momentum led to LFL sales growth of 9.4 percent with positive LFL sales in each of the group’s sales channels. Wholesale revenue maintained the levels of growth delivered in the first half year, growing on a full year basis by 42.9 percent.
Gross margin performance across the group’s sales channels remained flat year on year across the second half. SuperGroup said, this performance was offset by the adverse impact of foreign exchange and the strength of wholesale growth, being faster than retail, resulting in a dilutive mix impact. Accordingly, Group level gross margins are anticipated to decline on a full year basis in the range of 120 bps to 140 bps.
SuperGroup continues to implement growth strategy
The year closed with 555 Superdry branded stores having passed the milestone of operating 1 million sq. ft. of owned trading space during the second half. During the quarter the group opened 26 new stores of which six were owned and 20 franchised. The company said, on-going programme to develop regional distribution facilities in Europe and the USA to complement the group’s capability in the UK remains on track.
In the USA the benefit of continued strong e-commerce growth, improving store LFL performances and positive new store performance led to the company achieving a break-even in FY17, in line with guidance.
The Board anticipates that full year profit will be in the range of 86 million to £87 million pounds (111 to 112 million dollars) in line with market expectation.