Update

RNS Number : 6939I

SuperGroup PLC

20 June 2011

 



SuperGroup plc

·    Investor and analyst visit

·    Opening of Iconic Regent Street flagship store

·    Update on store opening programme

SuperGroup plc ("The Group" or "The Company") owner of Superdry, one of the fastest growing brands internationally, today hosts an investor and analyst visit at its Cheltenham headquarters, beginning at 12 noon.

During the day, the Group's senior management team including Julian Dunkerton (Chief Executive), Chas Howes (Group Finance Director), James Holder (Brand and Design Director), Theo Karpathios (Chief Executive Wholesale & International), Luc Clement (Head of European Development), Chris Griffin (Head of e-Commerce) and Nigel Jobson (Head of Property) will present on the business. There will be updates on new product and designs, together with UK and international growth opportunities.

No new material information will be given during the day save for that in this announcement. The presentation will be available on the Company's website from 12 noon today.

Regent Street

We are delighted to announce that we have exchanged contracts, subject to landlord's consent, for an iconic site in Regent Street which will become our flagship London Superdry store.

This part of Regent Street is set to fundamentally change with the opening of Hollister and Burberry flagships and the addition of a new Abercrombie & Fitch store, helping to transform a previously strong pitch in the heart of the West End into a major fashion location.

The store will comprise 59,000 gross sq ft (of which 38,000 sq ft is trading space over four floors), which will be used as an international showpiece and our London showroom. Our aim is to open towards the end of the financial year, although we are planning a phased approach for the site as a whole. 

Retail

SuperGroup operates 61 standalone stores in the UK and 70 concessions and has a stated roll out programme of opening 20 owned stores per year.  We remain committed to this plan in 2011/12.  Last year the Company opened 21 new stores, including three resites.

We anticipate opening between 6-10 stores in the first half of our financial year, with three new stores on schedule to open in our first quarter.  A significant proportion of the remaining balance of new stores will open before the important Christmas season. There will always be a natural element of phasing to our store opening programme, a variability in lead times, and also differences in expected sales contribution, from site to site and we will continue to update on our store openings on a quarterly basis. The potential in the UK remains and SuperGroup continues to believe that there is capacity for up to 150 stores in the UK market.

SuperGroup's internet sales continue to grow and currently account for 8% of group sales.  We believe that internet sales can reach at least 20% of overall sales. During the last year we opened a number of foreign language websites, including for the French, German and Belgian markets, and our Dutch site is due to go live very soon.  We will continue to build country-specific websites to match demand. This is a growing source of opportunity for our business and we will employ a number of marketing activities to build and grow the user base and encourage loyalty from online users.

Wholesale & International

Internationally the Group's store roll-out programme is driven primarily through the franchise model. In February 2011, SuperGroup purchased SuperGroup Europe BVBA ("SuperGroup Europe"), previously known as CNC Collections BVBA, to spearhead and accelerate its European growth.  Internationally there are currently 73 owned, franchised and licensed Superdry stores. Through SuperGroup Europe we are planning to open a small number of larger format stores in mainland Europe over the next 12 - 18 months.

Overseas demand from potential franchisees is very strong and we anticipate opening c.50 international franchise and license stores this year (2010/2011: opened 44) across Europe, the US, South America, the Middle East and Far East.

Current Trading

The Group's strategy remains on track, and trading across the Group as a whole is in line with management's expectations.  Within that, retail growth remains approximately at the same level as in Q4 but has seen a marked improvement over the last three weeks and is complemented by strong wholesale growth.

Julian Dunkerton, Chief Executive, commented:

"Our business continues to grow strongly and we are pleased to be announcing today the signing of our flagship Regent Street Superdry store, which we intend opening towards the end of the year.

"The potential for our brand remains, both in the UK and internationally, where we see largely untapped capacity and where the CNC acquisition is already proving critical in helping us to accelerate our growth. We have clear visibility on our roll-out programme for the first half and remain confident of delivering our target store openings this year.  We remain positive about the outlook and the continued development of the Group in the current year."

20 June 2011

For further information:

SuperGroup	Tel: [phone]
Matthew Barnett
College Hill
Matthew Smallwood	Tel: [phone]
Justine Warren

Notes to Editors

SuperGroup's stores and Superdry brand focus on the branded fashion market providing affordable premium quality clothing and accessories across both men's and women's wear. 

With a core focus targeting the 15 - 25 age group, Superdry attracts broad appeal across a wider demographic. 

The Group has grown at an impressive rate through a strategy of standalone store openings and franchises, a fast growing wholesale business and the Internet.

 

END

 

 

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