Trading update

RNS Number : 8118L

SuperGroup PLC

14 January 2016

 

SuperGroup<Plc

14 January 2016

Trading Statement

Solid Peak Trading

SuperGroup Plc ('SuperGroup' or 'Group'), owner of the Superdry brand, today provides its trading update for the 11-week period from 25 October 2015 to 9 January 2016 and the 37-week period from 26 April 2015 to 9 January 2016.

TRADING UPDATE

Revenue

£M	11 week period ended 9 January		37 week period ended 9 January
	FY16	FY15	FY16	FY15
Total Retail	143.5	125.2	315.6	256.8
LFL1 (%)	1.2	12.4	9.5	3.8
New Retail Space (Sq. Ft.) 2	64,000	27,000	127,000	74,000

During the 11-week period, Retail revenues increased by 14.6% year-on-year reflecting the positive impact from the Group's European store roll-out programme.  The sales momentum achieved in the first half of the financial year has been maintained on a two-year basis, through like-for-like sales growth in the 11-week period of 1.2%. On a two year basis this represents like-for-like growth of 13.7% in line with the year-to-date performance.

The Group opened 11 net² new stores in the period, of which four were in Germany (including a 20,000 sq.ft. store in Cologne), adding a total of 64,000 sq.ft. to its trading space.

Gross Margin

The Group traded in line with its planned promotional strategy throughout the period, with a series of sub-category promotions prior to Christmas followed by a focused clearance event, in-store and on-line.  Accordingly, there is no change to guidance for the full year gross margin accretion of between 40bps and 60bps.   

Euan Sutherland, Chief Executive Officer, commented:

"Having made further good progress through our peak trading period our focus remains on delivering our strategic plan to create a global lifestyle brand. This encompasses the continued extension of the Superdry brand and the execution of clear global retail growth opportunities, under-pinned by ongoing investment to strengthen the business.

With a positive customer reaction to our latest product developments, a strong pipeline for new stores in our targeted European markets and established momentum in e-commerce, the board remains confident in delivering underlying³ profit before tax for the full year in line with analyst expectations⁴ and in the brand's continued long-term growth."

Notes: 

1.       Like-for-like sales ('LFL') growth is defined as the year-on-year sales growth for stores and concessions open more than one year and includes e-commerce revenues.  Foreign currency sales are translated at the average rate for the month in which they were made.

2.       Net numbers are defined as store openings less store closures.  Total space includes the incremental changes arising from store relocations, of which there were 3 during the period adding 6,000 sq.ft.

3.       Underlying is defined as reported results adjusted to reflect the impact of exceptional items and re-measurements (and the related income tax where appropriate). The Directors believe that the underlying results provide additional guidance to statutory measures to help understand the performance of the Group.

4.       The board considers market expectations for the financial year ended 30 April 2016 are best defined by taking the range of forecasts of PBT published by analysts who consistently follow the Group.  The current consensus of PBT forecasts as at 13 January 2016, of which the board is aware, is £72.2m.

Trading comparatives for each quarter of FY16 are detailed below: 

FY16	Q1 16	YOY %	Q2 16	YOY %	1H16
Total Retail	£80.6m	33.4%	£91.5m	28.5%	£172.1m
LFL	19.3%		15.5%		17.2%
Total Space (sq.ft '000s)	782	+21.0%	827	+21.8%	827

Financial Calendar

The Group will provide its next scheduled news flow at the year-end trading update on 12 May 2016.

Cautionary Statement

This announcement contains certain forward-looking statements with respect to the financial condition and operational results of SuperGroup Plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, SuperGroup Plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.

For further information:

SuperGroup
Nick Wharton	[phone]
Chief Financial Officer	[e-mail]
Tony Newbould	[phone]
Head of Investor Relations	[e-mail]
Tulchan
Susanna Voyle	[phone]
Siobhan Weaver	[e-mail]
Charlotte Church

 

END

 

 

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