Supergroup underlying profit down
Supergroup, the owner of the Superdry fashion brand, has reported that its full-year pre-tax profit rose by 8.7% to £51.4 million in the year ending 29 April.
However underlying pre-tax profit fell 14.7% to £42.8 million reflecting the operational problems experienced by the group during the year.
Julian Dunkerton, chief executive officer of Supergroup, said: "Whilst sales have continued to grow substantially, this has been a disappointing year for the group. We have faced challenges brought about by the rapid growth of our business which have been compounded by the volatile and adverse market conditions being experienced by all fashion retailers. Profits have, therefore, fallen short of expectations."
The group experienced problems with stock availability in the year and was also affected by issues arising from the upgrade of the group’s warehouse IT system.
UK like-for-like sales including internet sales rose 2% while gross margin increased 120 basis points. Group revenue grew by 31.9% to £313.8 million despite the operational challenges.
Superdry opened 26 new standalone stores in the UK and Europe during the year taking the total to 103. It also increased the number of international stores to 101 by opening 48 franchised and licensed stores.
The group said internet sales had continued to grow strongly and now contribute 10% of group revenue.
Dunkerton added: "We have now strengthened our management team and I am pleased with the impact these changes are having on our efforts to improve our operational capability. Despite the backdrop, the Superdry brand remains strong and I am encouraged by the potential for our 2013 ranges. We are now committed to growing the group in a controlled and measured way."
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