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12 Feb | Supergroup Hits 12 Month Highs

A retailer sells more product over Christmas, it releases a statment to that effect, the price of its stock goes up. It’s investing Utopia. But how often does it happen just like that in reality? Read on my sceptical friends…

Supergroup (a UK-based clothing retailer that features brands such as Superdry and Cult) has had a stoinking week or so on the back of a handy Interim Management Statement covering the 13 week – Christmas – period to 27 January 2013 and is now forging ahead posting new 12 month highs (chart below courtesy of SharePrice.co.uk).

 

sgp-1-month

 

 

This from the statement:

A good Christmas trading period contributed to like-for-like sales for the quarter up 10.6%. There were notable performances from jackets, knitwear and gifting accessories. Total retail sales in the 13-week period were £89.8m, an increase of 14.4% on the comparable period last year and both the internet and the Group’s standalone stores performed well.

Five standalone stores were opened during the quarter in Leeds, Inverness, Paris (France), Antwerp (Belgium) and Oberhausen. Oberhausen is the Group’s first owned store to open in Germany and trading from around 5,000 square feet, represents the first European store on the UK’s larger footprint model. The Group has opened 40,000 square feet in the year to date and, with a number of stores scheduled to open in the latter part of the fourth quarter, remains on track to deliver around 70,000 square feet for the full year.

We first took up a little slice of Supergroup – investing a pound a point at 653 pence – last October. We have since averaged down to 612 pence for 3 pounds a point.

On the back of a little Spring-based optimism from Julian Dunkerton, Chief Executive Officer of Supergroup we’re kinda glad we did:

The level of the order book for the forthcoming season and the retail performance during the quarter are positive indications of the demand for Superdry product.

Although trading conditions remain volatile and unpredictable, the year to date results, and the early indications of the response to the new season range, have provided us with ever increasing confidence for the future.

Thanks again for dropping by.

Paul
rsvp@investorsoiree.co.uk