SuperGroup sales up 42% to £82 million

SuperGroup Plc, owner of the Superdry brand reported

on trading for the three months to 30 October. The famous T-shirt company’s sales upped by 42% to £82 million, compared to £58 million achieved one year ago.  

Wholesale sales up 67% to £42 million while retail sales also increased in SuperGroup, by 23% to £40 million from last year’s £32 million, affected by previously announced temporary disruption to warehouse operations; the company explained in a communicate.

"While this has been a demanding period for SuperGroup logistically, we are well on the road to rectifying the situation and have learned valuable lessons in the process.  These changes to our UK distribution capability are vital to the future success of this business.  Additionally, as we grow we will continue to strengthen our systems, infrastructure and management team across the business to support our future requirements. "The broader macro and consumer environment remains uncertain.  However, we look forward to the peak season with a growing portfolio of stores both in the UK and internationally and confidence in the future growth of the business," summed up Julian Dunkerton, Chief Executive Officer.

Total sales year-to-year at SuperGroup raised over 50% to £136 million, from a starting point of £90 million one year ago. Retail sales up 34% to £73 million (2010: £54 million) and wholesale sales up 76% to £63 million (2010: £36 million). The latter channel maintained its growth trajectory throughout the period showing an increase of 67%.
 “Following the announcement on 5 October 2011 regarding specific short-term systems and operational issues at the Group's UK distribution centre, we can confirm that the recovery plan is on track. Progress has been made in restoring the replenishment capability and further improvements are expected during November,” they assured to both investors and avid fans.  Retail sales during the period were clearly affected by the disruption, but grew by 23%.

“As previously announced, we expected the impact of the disruption on this year's profits, including lost sales and additional operating costs, to be between £6-9 million.  We will update shareholders further at the time of the half year results announcement on 14 December 2011.”
SuperDry is proving to be a good ambassador for its parent group, with the number of standalone stores increased by 12 in the first half bringing the total to 72 and a further four stores are due to open before Christmas. Additionally, the Wholesale Division increased its portfolio of Superdry international stores by 11 over the period, bringing the total to 101.