SuperGroup eyes further store openings after sales soar 66%

THE owner of the booming Superdry fashion brand and chain has posted a surge in its first-quarter trading, marking a robust recovery from the previous three months as it stuck firm to ambitious store opening targets.

SuperGroup revealed that total group sales leapt 66 per cent to £54 million in the three months to end‑July from £33m in the same period of 2010. Retail sales climbed 51 per cent to £34m, up from £22m in the corresponding period last year.

The firm, which has 62 stores under the Superdry and Cult brands, also repeated its belief that there is capacity to open as many as 150 stores in the UK.

The retailer, which also has 75 UK concessions, opened two stores in the quarter, at Birmingham airport and Bromley in Kent, as well as two additional Scottish stores since the period ended, in Dundee and Livingston. It said it would accelerate store openings in the run‑up to Christmas, with a general target of 20 openings a year.

Overseas, where SuperGroup has 73 franchised stores, the retailer announced plans to open 50 stores, up from 44 in the previous year.

Julian Dunkerton, chief executive of the group, which was one of last year’s most successful flotations, was positive on growth prospects. “We see continued growth across our business – in the UK, overseas, and via our internet platform,” he said.

“Our domestic and international rollouts are on track and we remain excited about the group’s prospects.”

The firm’s wholesale division opened a further ten Superdry stores in the first quarter, bringing the total to 90.

The update was welcomed by the City, hailing it a sharp turnaround from a relatively flat previous trading quarter to 1 May.

Shares in SuperGroup, whose Superdry brand is worn by celebrities such as David Beckham and Leonardo DiCaprio, closed last night up 7 per cent at 1,059p. That is sharply up on the 500p flotation price, although the shares have been as high as 1,898p in the past 52 weeks.

Andrew Wade, retail specialist at Numis Securities, noted that the autumn/winter product range had been received well by customers, with women’s knitwear, jackets and accessories the standouts.

Wade said Numis remained positive on SuperGroup’s shares, citing the scope for range extension.

lSports Direct, Britain’s biggest sporting goods retailer, said it would meet its annual profit target despite having to pay a £2m success fee to golfer Darren Clarke for winning the Open Championship in July. Clarke wears the firm’s Dunlop brand.

Sports Direct, run by Newcastle United FC owner Mike Ashley, has pencilled in an underlying earnings target of £215m.