SuperGroup profits down 30% after challenging first half
SuperGroup, the owner of the Superdry fashion brand, saw its underlying pre-tax profit fall by 31.6% in the first half of its financial year.
While retail revenue rose by 12.5% to £131.6 million in the 26 weeks to 25 October, like-for-like sales dropped by 4.1%. Underlying operating profit fell to £12.1 million from £17.7 million previously due to underlying cost growth.
SuperGroup said its retail division had experienced a challenging first half as revenues were impacted by a shortage of key summer lines and an under-performance in womenswear. Although there was a brief upswing in like-for-like sales at the beginning of the second quarter, sales of autumn ranges were impacted by the mild weather from mid-September through to November.
The group said that gross margin will be affected by retail clearance activity in the second half and it has revised its full year guidance to broadly flat from the 25 basis points previously forecast.
During the first half SuperGroup opened 12 new owned stores to add 46,000 square feet of space to its portfolio.
SuperGroup chief executive Euan Sutherland said: “SuperGroup is an exciting business with a strong brand and significant growth opportunities which, during this period, has suffered from widely publicised external factors. Additionally, I have identified that there are some parts of our operations that we can improve. I am reviewing every aspect of the business, including the execution of our strategy, cost management and capital allocation and will report our conclusions in the spring.
“We are well prepared for the important peak season and remain on track to deliver profits within guidance.”
