RNS Number : 9919X
SuperGroup PLC
12 May 2016
 

SuperGroup Plc

 

Year-end Trading Update

 

Robust trading in final quarter completes year of strong progress

 

12 May 2016

 

SuperGroup Plc ('SuperGroup' or 'Group'), owner of the Superdry brand, today provides a trading update covering the 15 week period from 10 January to 23 April 2016 (the 'period') and for the 26 week ('Half 2') and 52 week ('Full Year') periods ended 23 April 20161

 

Revenue

 

15 week period ended 23 April

Half 2

Full Year

 £M

Q4 2016

Q4 2015

Growth

H2 2016

H2 2015

Growth

FY 2016

FY 2015

Growth

Total Group revenues

 

 

 

334.8

278.4

20.2%

589.5

486.6

21.1%

 

Total Retail

98.7

   76.0

29.9%

244.0

202.5

20.5%

416.1

334.1

24.5%

Like-for-like ("LFL") (%)2

15.4%

11.6%

 

8.0%

11.3%

 

11.3%

4.8%

 

Ave. Space (sq.ft '000s)3

889

728

22.1%

886

715

23.9%

837

683

22.5%

Wholesale

 

 

 

90.8

75.9

19.6%

173.4

152.5

13.7%

 

Retail like-for-like performance in the period was strong against a challenging comparative last year, although it should be noted that this is the Group's lowest volume trading period. This performance reflects continued traction in e-commerce and initial benefits from our new sportswear and premium product ranges.

 

Group revenues4 for the full year increased by 21.1% to £589.5m.  The Retail division increased revenues by 24.5%, with broadly equal contributions from new space and like-for-like sales.  

 

Wholesale revenue growth of 13.7% for the full year has benefitted from a good second half performance which has seen sales increase by 19.6%.  Full year growth reflects strong in-season sales through the existing Wholesale customer base plus the opening of 48 net franchised stores. 

 

Gross margin

We anticipate delivering margin accretion towards the top end of the full year guidance of 40 - 60 bps.

 

Net Cash

The Group's net cash position at 30 April 2016 was £102m (25 April 2015: £78m).

 

Underlying profit before taxation

Profit for the 52 week period is expected to be in the range £72.5m and £74.0m. Progress in North America and China continues in line with our plans and initial losses in these markets will be in line with market guidance, leading to a small year-on-year dilution of operating margin.  

 

Strategic progress

The Group has continued to diversify and expand the reach of the Superdry brand through category led product innovation, together with geographic and channel expansion.  The new store expansion programme added 136,000 sq. ft. in the year representing year-on-year space growth of 17.8%. 

 

The Group plans to open two distribution centres during 2016, to serve its retail customers in Europe and North America better and to ensure that we have a scaleable platform to support our growth ambitions.

 

Euan Sutherland, Chief Executive Officer, said:

"The Group has traded robustly throughout the final quarter as we continue to deliver our strategy to create a global lifestyle brand.  We have opened 24 net new stores across our targeted European markets and have a strong pipeline of new stores for the new financial year. 

 

During the quarter the Group paid its first dividend in line with our progressive dividend policy whilst retaining sufficient capital to support our investment programme.  Our focus remains on the extension of the Superdry brand and execution of clear growth opportunities, under-pinned by continued investment in infrastructure to strengthen our business."

 

For further information:

 

SuperGroup

 

 

 

Nick Wharton

Chief Financial Officer

+44 (0)1242 586456

nick.wharton@supergroup.co.uk

Tony Newbould

Head of Investor Relations

+44 (0)1242 586616

tony.newbould@supergroup.co.uk

 

 

 

 

Tulchan

 

+44 (0) 20 7353 4200

supergroup@tulchangroup.com

Susanna Voyle

 

 

 

Siobhan Weaver

 

 

 

Charlotte Church

 

 

 

           

Conference call

SuperGroup will be hosting a conference call for analysts and institutional investors at 08:00 hours BST today.

 

 

United Kingdom (Local)

020 3139 4830 Participant pin: 26726830#

All other locations

0808 237 0030

                       

Announcement of Preliminary Results

SuperGroup will announce its preliminary results on Thursday 14 July 2016 at the London Stock Exchange.

 

Notes

1.       The financial year ended 30 April 2016, covers the period 26 April 2015 to 30 April 2016 and represents 53 weeks. All references to financial year and the commentary in this announcement are for the 52 weeks to 23 April 2016 results to aid comparison with the prior year. 

The Group's underlying profit before taxation for the 53 weeks financial year is anticipated to be broadly in line with the 52 week period.

 

2.       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. Foreign currency sales are translated at the average rate for the month in which they were made.
 

3.       The Group opened 26 stores during the year, closed 2 stores and there were 5 relocations.
Retail Space Analysis (headline figures quoted represent weighted average):

 

 

FY15

FY16 Q1

FY16 Q2

FY16 Q3

FY16 Q4

 

Sq Ft

Stores

Sq Ft

Stores

Sq Ft

Stores

Sq Ft

Stores

Sq Ft

Stores

UK/Eire

553,000

97

557,000

98

563,000

100

581,000

102

570,000

100

EU

162,000

66

176,000

70

215,000

77

261,000

84

281,000

87

USA

49,000

15

49,000

15

49,000

15

49,000

15

49,000

15

Group

764,000

178

782,000

183

827,000

192

891,000

201

900,000

202

 

4.       Group revenues FY16:

 

FY16

Q1a

YOY

Q2b

YOY

H1

YOY

Q3c

YOY

Q4d

YOY

H2

YOY

FY16

YOY

 

£m

%

£m

%

£m

%

£m

%

£m

%

£m

%

£m

%

Retail

80.6

33.4

91.5

28.5

172.1

30.8

143.5

14.6

98.7

29.9

244.0

20.5

416.1

24.5

LFL

19.3%

 

15.5%

 

17.2%

 

1.2%

 

15.4%

 

8.0%

 

11.3%

 

Wholesale

 

 

 

 

82.6

7.8

 

 

 

 

90.8

20.5

173.4

13.7

Group

 

 

 

 

254.7

22.3

 

 

 

 

334.8

20.2

589.5

21.1

 

a.     FY16 13 weeks from 26 April 2015 to 26 July 2015

Note: 10 weeks to 5 July 2015 included as current trading update in full year announcement on 9 July 2015

b.     FY16 13 weeks 13 weeks from 27 July 2015 to 24 October 2015

c.     FY16 11 weeks from 25 October 2015 to 9 January 2016

d.     FY16 15 weeks from 10 January 2016 to 23 April 2016 

 

Notes to Editors

 

SuperGroup is the owner of British global 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 with a clear strategy for growing our e-commerce business as well as our operations in key markets within Europe, North America and China.

 

Over the past 12 years, we have expanded rapidly, with a physical presence in 51 countries and 662 stores and concessions globally. We also have a successful e-commerce business with 26 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.

This information is provided by RNS
The company news service from the London Stock Exchange
 

END

 
 

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