SuperGroup in its interim results for the 26 weeks ended October 29, 2016 said that group revenue increased by 79.3 million pounds (97 million dollars) to 334 million pounds (410 million dollars), representing an increase of 31.1 percent, on the same period last year, which the company said, was driven by strong performances in each of channels and in all three routes to customer: wholesale, retail and ecommerce. In the 10 weeks to January 7, 2017, retail revenues of 162.1 million pounds (199 million dollars), increased by 20.6 percent year-on-year. SuperGroup said, this growth reflects continued like-for-like growth of 14.9 percent.
According to Euan Sutherland, Chief Executive Officer, of the company, “The first half year has seen further good progress with a strong sales performance in all channels, particularly wholesale. This converted to profitable growth after continued investment in both expanded distribution capability and in our development markets. The next generation store concept provides a further growth opportunity for the brand. Having traded well through our peak trading period, the Board remains confident in delivering full year underlying profit before tax in line with analyst expectations and in the group’s long term growth prospects as Superdry becomes a global lifestyle brand.”
SuperGroup sees growth across retail channels
Underlying gross profit increased to 196.5 million pounds (241 million dollars), representing an underlying gross profit margin of 58.8 percent, a decrease of 130bps on the previous year. Underlying profit before income tax for the period was 21 million pounds, an increase of 8.8 percent on the prior period.
Retail division revenues grew by 25 percent to 215.2 million pounds (264 million dollars) in 1H17 due to the continued expansion of company-owned stores together with continued positive like-for-like growth of 12.8 percent driven in particular by a strong performance in e-commerce. During the period, average retail square footage increased by 19 percent with the launch of 12 new stores, nine in Europe and three in the USA. The company relocated one store and closed three resulting in eight net new stores. E-commerce sales grew by around 40 percent during the period with participation of retail sales at 21.6 percent.
Revenues within the wholesale division increased by 43.8 percent year on year, delivering revenue of 118.8 million pounds (145 million dollars) with strong growth in all territories. The underlying operating profit was 39.4 million pounds (48.3 million dollars), a 38.7 percent improvement on 1H16.
Underlying basic earnings per share was 21 p compared to 20p in 1H16. Reported basic earnings per share was 11.5p against 10.2p in the same period last year, calculated using the basic weighted average number of ordinary shares outstanding for the period of 81,275,275. Diluted earnings per share is 11.5p based on a diluted weighted average of 81,715,755 shares. The company announced an interim dividend of 7.8 pence per share.