SuperGroup's sales rebound

The decision by SuperGroup to have a rare clearance sale and realign its strategy appears to have paid off after the owner of fashion clothing brand Superdry reported double digit like-for-like sales in the second half of its trading year.

SuperGroup's like-for-like sales rose 11.3 per cent in the six months to April 25, helping to turn round the company after a disappointing first six months. Full year like-for-like sales were 4.8 per cent up on the previous year.

Full-year group revenues were £484.7m, up 12.5 per cent, driven mostly by retail sales that rose 16.7 per cent to £332.8m. The wholesale division reported sales up 4.5 per cent at £151.9m.

Euan Sutherland, who took over as chief executive in October, on Wednesday described trading through the final quarter as "robust" and said that the company's underlying profit would remain in line with expectations, at £60m-£65m.

Shares rose 6 per cent in early trading to £10.58, but are still 27 per cent below their value this time last year.

Gross margins were flat to slightly up, Mr Sutherland said, an improvement on the previous guidance to the market.

"Our focus remains on the creation of a global lifestyle brand, through the extension of the Superdry brand and execution of clear retail growth opportunities, underpinned by continued investment to strengthen our business," he said.

SuperGroup seems to have put its troubles of the past few years, which included several profit warnings and accounting errors, behind it. Mr Sutherland said the decision to have a clearance sale in the third quarter followed by strong sales in the final 13 weeks paid off and that the company was "in better shape" than it had been.

The search for a new chief financial officer is continuing, with an announcement expected in July, Mr Sutherland said. Shaun Wills, the previous chief financial officer, was forced to step down in February after he was declared bankrupt.

Nick Wharton, former chief executive of UK-listed homewares group Dunelm, continues to fill in as chief financial officer.

The company was also helped by acquiring ownership of its North American stores six weeks ago, although Mr Sutherland said some lossmaking shops in the region would be closed.

In March it also generated headlines by announcing a collaboration with actor Idris Elba - best known for his role in the British television detective series Luther. Mr Sutherland said on Wednesday that the upmarket range the company is working on with Mr Elba will launch in the autumn.

The group opened 24 shops during the year, taking its global total to 178 - 97 of which are in the UK. It also opened 29 franchise stores. Ecommerce sales also reported strong growth, with revenues increasing by 39.5 per cent over the year.

Mr Sutherland said: "A strong pipeline of new stores in our targeted European markets, ecommerce momentum, the acquisition to take control of our brand in North America and the opportunity to increase awareness through our global collaboration with Idris Elba provide confidence for continued growth."

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