TIDMSGP
RNS Number : 8012O
SuperGroup PLC
10 November 2016
SuperGroup Plc
Pre-close Trading Statement
Delivery of strong sales growth across all channels and
strategic plan remains on track
10 November 2016
SuperGroup Plc ('SuperGroup' or 'Group'), the owner of the
Superdry brand, today provides a trading update covering the
26-week period to 29 October 2016 (the 'half year' or
'period').
Revenue
26 weeks 26 weeks Reported
to to
29 October 24 October Growth
2016 2015
GBPm ("H1 FY17") ("H1 FY16") %
-------------------- ------------- ------------- ---------
Group revenues 334.0 254.7 +31.1%
-------------------- ------------- ------------- ---------
Retail revenue 215.2 172.1 +25.0%
-------------------- ------------- ------------- ---------
Retail LFL(1)
(%) 12.8% 17.2%
-------------------- ------------- ------------- ---------
Average space
('000's sq ft) 939 789 19.0%
-------------------- ------------- ------------- ---------
Wholesale revenue 118.8 82.6 +43.8%
-------------------- ------------- ------------- ---------
Group revenues for the half year increased by 31.1% to
GBP334.0m. Reflecting the brand's global footprint, revenues
benefitted from Sterling's weakness with the impact of currency
changes accounting for approximately one third of the reported
growth in each of the Group's operating divisions.
Within Retail, the positive sales momentum from FY16, and in
particular the growth in e-commerce, continued consistently
throughout the first two quarters with total sales growth of 25.0%
and like-for-like sales growth of 12.8% achieved against strong
prior year comparatives.
Wholesale revenue increased by 43.8% in the half year,
benefitting from investments made in the prior year to strengthen
the Group's capability in this division.
Gross margin
The Group continued to deliver targeted scale and direct
sourcing benefits. However, gross margin in the period is
anticipated to decline year-on-year by approximately 130bps
primarily reflecting the strong participation of relatively lower
margin Wholesale sales. Other, smaller, dilutive impacts arose from
targeted clearance activity, as part of the project to expand the
Group's distribution infrastructure, and the trialling of some
one-off, non-comparable promotional mechanics within Retail.
Strategic progress(2)
The Group continued its strategic progress during the half year
including opening 12 owned stores, all outside the UK. The net
addition of 67,000 square feet to the own store portfolio increased
the brand's average retail space by 19% year-on-year. New and
non-annualised retail space contributed c.15% sales growth over the
period.
The Group successfully opened new distribution facilities in
Europe and the USA. They will operate as planned throughout peak
trading and remain on track to be fully operational in 2017. As
previously guided dual running and other mitigation costs will add
c. GBP2m to the operating cost base in FY17, with GBP1.7m incurred
in the half year.
Good progress continued to be made in the Group's development
markets of North America and China, in line with their respective
business plans. Specifically, the brand continued to build traction
in the USA with continued strong e-commerce growth and the new
stores opened in Manhattan, Philadelphia and Orlando performing
well.
Underlying(3) Profit before Taxation
The Board anticipates that full year profit will be in line with
market expectation(4.) and that the half year profit, after
distribution centre migration costs and development market
investment referred to above, will be in the range of GBP20m -
GBP22m.
Commenting on SuperGroup's performance Euan Sutherland, Chief
Executive Officer, said:
"This is another good performance particularly when set against
last year's strong first half trading. Our new product ranges
continue to perform well and during the second quarter our
continuity ranges provided trading resilience when the weather
across Europe was unseasonably warm.
Our focus remains on executing the clear growth opportunities
for the Superdry brand, together with key third quarter trading
period ahead of us. The long-term opportunity for the brand is
underpinned by continued investment in infrastructure and our
multi-channel strategy that combines the ongoing development of our
e-commerce platform with a disciplined approach to new space
growth. Our ongoing diversification across geography, channel and
category, reduces the Group's reliance on any individual market and
provides further confidence in the Group's future prospects as we
develop our global lifestyle brand."
For further information:
SuperGroup
Nick Wharton +44 (0) 1242 586456
Chief Financial Officer nick.wharton@supergroup.co.uk
Tony Newbould +44 (0) 1242 586616
Head of Investor Relations tony.newbould@supergroup.co.uk
Tulchan
Susanna Voyle +44 (0) 20 7353 4200
Siobhan Weaver supergroup@tulchan.com
Conference call
SuperGroup will be hosting a conference call for analysts and
institutional investors at 08:00 hours today. A recording of the
conference call will be available on www.supergroup.co.uk shortly
afterwards.
Dial in: UK Toll Number: 0203 139 4830
UK Toll-Free Number: 0808 237 0030
Pin: 38537683#
Announcement of FY17 Interim Results
SuperGroup will announce its Interim Results for the 26 weeks
ended 29 October 2016, together with a third quarter trading update
on Thursday 12 January 2017
Notes
1. Like-for-like sales ('LFL') growth is defined as the
year-on-year sales growth for stores and concessions open for more
than one year and include e-commerce revenues. This represents the
trading LFL which has been adjusted for the 53(rd) week in the
previous financial year. Foreign currency sales are translated at
the average rate for the month in which they were made.
Reported Q2 Q1
----------------- ----------------------- -----------------------
GBPm FY17 FY16 Growth FY17 FY16 Growth
Total retail 114.6 91.6 25.1% 100.6 80.6 24.8%
LFL (%)(1) 13.7% 15.5% 11.9% 19.3%
Ave. Space
(sq. '000s)(2) 957 805 18.9% 920 773 19.0%
----------------- ------ ------ ------- ------ ------ -------
Reported LFL sales for FY16 were 11.3%; H2 8.0%; Q3 1.2%; Q4
15.4%.
2. Retail Space Analysis:
Closing
FY16 FY17 Q1 FY17 Q2
---------- ----------------- ----------------- -----------------
Sq Sq Sq
ft Stores ft Stores ft Stores
---------- -------- ------- -------- ------- -------- -------
UK & ROI 570,000 100 570,000 100 570,000 100
---------- -------- ------- -------- ------- -------- -------
EU 281,000 87 296,000 89 332,000 93
---------- -------- ------- -------- ------- -------- -------
North
America 49,000 15 65,000 17 65,000 17
---------- -------- ------- -------- ------- -------- -------
Group 900,000 202 931,000 206 967,000 210
---------- -------- ------- -------- ------- -------- -------
The Group opened 12, relocated one store and three stores were
closed during the half year.
3. Underlying is defined as reported results adjusted to reflect
the impact of the loss/gain recognised on re-measurements (being
the fair valuation of financial derivatives), exceptional items
and, when appropriate, the related income tax. 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 29 April 2017 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 9 November
2016, of which the Board is aware, is GBP84.6m Source:
Bloomberg.
Notes to Editors
SuperGroup is the owner of British lifestyle brand Superdry. A
brand designed for attitude not age with affordable,
premium-quality clothing, accessories, footwear and cosmetics.
As we develop the breadth and nature of our product range, we
continue to appeal to a much broader, aspirational age group. Those
who want to feel amazing in what they wear and appreciate style,
quality and attention to detail.
Already well established in the UK - our home market - we
operate a significant and continually expanding international
business, selling through our websites, wholesale partners, a
network of franchise stores and, increasingly, our independent
stores. We are becoming a more efficient business as we improve our
process from design to customer and refine our wholesale model.
Simultaneously, we are focused on expanding our business globally,
and we have a clear strategy for growing our e-commerce business as
well as Europe, North America and China.
The Group has a physical presence in 51 countries and 714 stores
and concessions globally. We also have a successful e-commerce
business with 25 international websites across 18 countries
covering 12 different languages and delivering to 169
countries.
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.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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