Supergroup second quarter sales up 18.5%
Supergroup, the owner of the Superdry brand, has reported an 18.5% increase in total sales in its second quarter after seeing its international online sales overtake those from the UK.
In the 13 weeks ending 27 October, total sales climbed to £116.6 million from £98.4 million in the previous year. For the half year, total group sales rose by 21.1% to £191.6 million.
In the group’s retail division, sales grew by 20% to £63.5 million while half year sales increased by 18.8% to £116.7 million. On a like-for-like basis, sales for the quarter were up 7.8%, and up 8.1% for the half year.
During the quarter, Supergroup added 33,000 square feet of owned retail space taking the total to 573,000 square feet, which was a year-on-year increase of 17%. In the UK, the group opened three new stores and acquired two third-party franchise stores which were incorporated into the owned store estate. The group also launched two owned stores in Europe, as well as 21 franchise stores around the world.
On 31 October 2013, Supergroup completed a deal to take control of its agency operation in Germany which resulted in the group acquiring seven stores and the rights to the German market for a consideration of £3.5 million of which £0.7 million will be settled in shares. Supergroup said the acquisition will enable it to benefit from improved wholesale margins and to accelerate the roll-out of its German stores.
Wholesale sales for the quarter were £53.1 million, which was an increase of 16.7% on the prior year.
Commenting on the results, Supergroup chief executive Julian Dunkerton said: "We have delivered another strong trading performance, which has seen good sales growth in both the Retail and Wholesale divisions. At the same time as delivering revenue growth we continue to build the platform to support our strategy and I am pleased to report that the Group remains on track with its infrastructure investments.
"E-commerce sales from Europe and the Rest of the World have now overtaken those from the UK reinforcing our view of the international appeal of the Superdry brand, an important step in delivering our international strategy.
“Our trading performance, the positive customer reaction to new product ranges and the preparation ahead of peak trading, provides me with confidence in our ability to meet market expectations."
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