Supergroup boosts sales despite weather
Supergroup, the owner of the Superdry clothing brand, saw its group sales rise by 10% in its first quarter as improved retail practices helped lift performance.
In the 13 weeks to 29 July, total group sales reached £59.7 million while total UK sales rose 19.7% to £40.2 million. Like-for-like sales were also up, increasing by 1.7% as the group sold a healthy number of jackets, gilets and sweatshirts as a result of unseasonably wet weather in the period.
The group said its UK revenues were "resilient" in spite of the weather conditions and aggressive promotional activity on the high street.
Supergroup opened two standalone stores in Sunderland and Windsor in the quarter, taking the UK portfolio to 81. In total, an extra 22,000 sq ft of retail space was added including the opening of the top floor of the group’s Regent Street store in central London.
Wholesale sales fell 5.6% to £19.6 million, which Superdry attributed to differences in the timing of stock despatches to UK and international partners compared to last year. The group said that its Autumn/Winter 2012 order book was a more representative reflection of current performance with an uplift of around 7% on last year for the season as a whole.
Following a recent franchise deal in India, the group confirmed that it had completed a five-year deal with Azadea Group Holding SAL, a significant franchise operator across the Middle East and North Africa, to open stores across Lebanon, Egypt, Qatar and Bahrain.
Supergroup’s portfolio of franchised stores increased by 13 during the quarter to 102; six stores were opened in Spain and one in each in Greece, France, Georgia, Saudi Arabia, Jordan, Venezuela and South Africa.
Julian Dunkerton, chief executive officer, said: "The Retail division has produced a sound performance during the quarter against challenging comparatives and reflects the impact of improved retail practices. Whilst Wholesale revenues appear more challenging in the quarter, we are encouraged by the level of the order book for the full Autumn/Winter season.
"Trading conditions remain volatile and unpredictable, but Supergroup has produced a pleasing performance and while we recognise that it is early in the year we are on-course to meet our financial objectives."
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