16 Dec | Supergroup’s Lastest Interims
Prices in Supergroup – the High Street fashion retailer – are testing 24 month highs on the back of their interim results released on the 12th December.
For those of you new to the world of Supergroup, they’re the company behind the Superdry and CULT brands.
Here’a a little blurb from the Superdry website:
Inspired by a trip to Tokyo in 2003, Superdry fuses design influences from Japanese graphics and vintage Americana, with the values of British tailoring. The result – unique urban clothing, with incredible branding and an unrivalled level of detailing. Such distinctiveness has gained the brand exclusive appeal, as well as an international celebrity following.
We’ve been fans of Supergroup for a while now, picking up our first tranche back in October 2012. At the time they were FTSE 350 constituents, now they’ve joined the ranks of the FTSE 250. We wrote about them again back in September of this year.
Their rise in price over the past 18 months has been nothing short of meteoric (see Supergroup’s 12 month chart below courtesy of SharePrice.co.uk). In June 2012 you could pick up a Supergroup share for 300 pence. Today they’re testing 1,300 pence. I’m still holding out hope for a return on my latest euro-jackpot ticket but based on return on investment, there’s no better holding currently in our portfolio.
Highlights from their most recent interims show a company that’s certainly moving in the right direction:
- Retail revenue up 19.3%; like-for-like sales growth 8.1%;
- Full price internet sales up 29.3%, strong performances in key European markets supported by significant developments to the e-commerce sites;
- Wholesale revenue up 25.0%;
- Improved divisional operating margins; and
- Underlying profit before income tax up 21.8%.
But it’s the international expansion story that continues to capture investor imaginations.
Supergroup has stated earlier in the year that it plans to open between 40 and 60 new stores per annum. An aggressive growth strategy that has certainly worked well in the past 18 months.
This from the interims:
At the end of October the Group sold its products through 447 Superdry branded stores and concessions throughout the world, spanning 41 countries. 72 new locations have opened up in the last 12 months, of which 46 have opened since the financial year-end.
Forecasts put Supergroup on a P/E ratio of over 22, but significant infrastructure investment will always affect the bottom line.
We’re thinking it might be time for a little top up on our holdings and await the next set of interims that our due out on the 6th February 2014.