Superdry delivers stunning turnaround

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SuperGroup, owner of the global lifestyle brand Superdry, has achieved an impressive 22.3 per cent increase in sales for the first half year, to £254.7 million.

SuperGroup’s retail arm represented its strongest division, generating 30.8 per cent growth to £172.1 million, reflecting the continued expansion of wholly owned stores in the EU. Additionally, retail same store sales saw a major turnaround, increasing rapidly by 17.2 per cent compared to a decline of 4.1 per cent during the same period last year.

This was driven particularly by a strong eCommerce performance. Online retail sales grew by 19.2 per cent as its digital channel continues to be its fastest growing route to market.

“That noted, SuperGroup’s core focus remains on significant physical expansion within its key markets – Europe, North America and China,” observes  Anusha Couttigane, senior consultant with retail analyst Conlumino

As part of its full year strategy, the group has set out to expand own store space by some 130,000 sqft  (12,000 sqm) within Europe. So far, nearly half this target has been achieved, the company having opened 14 net new stores comprising 63,000 sqft (5850 sqm) of new trading space during the first half year.

Elsewhere, its wholesale arm saw 23 international franchise and licensed stores open during this period, contributing to a 7.8 per cent growth in wholesale revenue. However, the seasonality of its products has caused the group to announce an expected £3 million to £3.5 million operating loss in its North American operation for the full year as it realigns its product offer for its customer proposition on the continent.

“With a successful first half completed, SuperGroup has positioned itself well for the all-important Christmas trading period,” comments Couttigane.

“In the run-up, product innovation has been leveraged to encourage new customers, including Superdry’s premium collaboration with Idris Elba and its Superdry Sport and Superdry Snow collections for women, making the brand a strong contender for Christmas wish lists.

“However, while its first six months have benefited from soft comparatives, the second half is set to be more demanding,” she concluded.

SuperGroup’s full year pre-tax profit projection remains stable at £72.1 million.


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