RNS Number : 7362R
SuperGroup PLC
09 November 2011
 



 

SuperGroup Plc

 

Interim Management Statement

 

SuperGroup Plc ('SuperGroup' or 'the Group'), owner of the Superdry brand and one of the fastest growing international branded clothing companies, today reports on trading for the three months to 30 October 2011.

 

 

·      Total Group sales up 42% to £82 million (2010: £58 million);

 

·      Retail sales up 23% to £40 million (2010: £32 million), affected by previously announced temporary disruption to warehouse operations;

 

·      Wholesale sales up 67% to £42 million (2010: £25 million).

 

The Group's sales year to date are:-

 

·      Total Group sales up 51% to £136 million (2010: £90 million);

 

·      Retail sales up 34% to £73 million (2010: £54 million);

 

·      Wholesale sales up 76% to £63 million (2010: £36 million).

 

 

Following the announcement on 5 October 2011 regarding specific short-term systems and operational issues at the Group's UK distribution centre, we can confirm that the recovery plan is on track. Progress has been made in restoring the replenishment capability and further improvements are expected during November.

 

As previously announced, we expected the impact of the disruption on this year's profits, including lost sales and additional operating costs, to be between £6-9 million.  We will update shareholders further at the time of the half year results announcement on 14 December 2011.

 

Retail sales during the period were clearly affected by the disruption, but grew by 23%. Since the announcement on 5 October 2011 we have seen an improving sales trend as we move back towards more normal replenishment of our UK stores. Minor disruption to internet sales was quickly resolved and this channel continues to demonstrate strong trading through our new and improved internet site.

 

Wholesale sales were unaffected by the distribution issues as they operate on a different system.  This channel maintained its consistent strong growth trajectory throughout the period showing an increase of 67%, clearly demonstrating that the appeal and demand for the Superdry brand remain strong.

 

The UK rollout continues on track. The number of standalone stores increased by 12 in the first half bringing the total to 72 and a further four stores are due to open before Christmas. The Group's flagship store in Regent Street, London, also continues to make progress and is on track to be fully open by the end of this financial year.

 

Additionally, our international presence continues apace.  The Wholesale Division increased its portfolio of Superdry stores by 11 over the period, bringing the total to 101.

 

Julian Dunkerton, Chief Executive Officer, commented:

 

"While this has been a demanding period for SuperGroup logistically, we are well on the road to rectifying the situation and have learned valuable lessons in the process.  These changes to our UK distribution capability are vital to the future success of this business.  Additionally, as we grow we will continue to strengthen our systems, infrastructure and management team across the business to support our future requirements.

 

"The broader macro and consumer environment remains uncertain.  However, we look forward to the peak season with a growing portfolio of stores both in the UK and internationally and confidence in the future growth of the business."

 

9 November 2011

 

SUPERGROUP WILL BE HOSTING A CONFERENCE CALL FOR ANALYSTS AND INVESTORS AT 0830 HOURS GMT TODAY. PLEASE CALL JAMIE RAMSAY AT COLLEGE HILL FOR DIAL-IN DETAILS ON 020 7457 2047 OR EMAIL JAMIE.RAMSAY@COLLEGEHILL.COM

 

For further information:

 

SuperGroup

Tel: 44 (0) 1242 588187

Matthew Barnett




College Hill

Tel: 44 (0) 207 457 2020

Matthew Smallwood


Justine Warren


 


This information is provided by RNS
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