www.supergroup.co.uk

SP down 10% market not convinced?

SuperGroup boss defends fashion retailer after shares tumble

By Graham Ruddick | Telegraph – 6 hours ago

The co-founder and chief executive of SuperGroup (Xetra: A1CT6Y - news) has defended the fashion retailer after its shares slumped 7pc on the back of a fall in profits.

Julian Dunkerton, whose company has had a tempestuous relationship with the City, said there had been a “misunderstanding” about the decline in profits and it had “literally nothing to do with actual trading”.

SuperGroup, which owns the Superdry brand, reported a 31.5pc decline in half-year pre-tax profits to £13.9m after exceptional items.

However, Mr Dunkerton said the performance was “encouraging” with like-for-likes sales up 3.9pc in the 26 weeks to October 28. “It was very necessary for us to give a solid performance,” he said.

The fall in profits was driven by a change in the deferred consideration value of SuperGroup’s European division, which it bought in 2010, because of movement in the retailer’s share price.

In the same period last year SuperGroup reduced its liabilities to the division by £6.1m after its share price fell almost two-thirds. However, SuperGroup shares have risen 10pc this year, and more than doubled since June, meaning it booked a £2.1m charge for re-increasing the liabilities.

Before exceptional charges, SuperGroup, renowned for its trademark T-shirts, hooded tops and checked shirts, said that pre-tax profits rose 13pc to £14.7pc.

However, analysts still questioned the company’s pace of growth. Sanjay Vidyarthi, at Espirito Santo, said: “Overall, while the business has stabilised, our view remains that consensus expectations of circa £50m profit before tax are too high as the cost of growth becomes apparent.”

SuperGroup floated in 2010 at £5 per share and soared to almost £18 within a year.

However, its shares then slumped after three profit warnings, provoked by troubles with a warehouse IT system, accounting errors and stock availability issues. Since then, SuperGroup’s board has been overhauled, with Susanne Given joining from John Lewis as chief operating officer.

SuperGroup shares fell 39½ to 557p.

..

The fall in profits was driven by a change in the deferred consideration value of SuperGroup’s European division, which it bought in 2010, because of movement in the retailer’s share price.

In the same period last year SuperGroup reduced its liabilities to the division by £6.1m after its share price fell almost two-thirds. However, SuperGroup shares have risen 10pc this year, and more than doubled since June, meaning it booked a £2.1m charge for re-increasing the liabilities.

Before exceptional charges, SuperGroup, renowned for its trademark T-shirts, hooded tops and checked shirts, said that pre-tax profits rose 13pc to £14.7pc.

13 Dec SuperGroup PLC SGP Panmure Gordon Buy 560.00 557.00 750.00 750.00 Reiterates

750 SP Target.

been watching sgp for fun as some of so called gurus like cynic praised it as a better place to make money then with my asos..I stoped paying attention to this one since cockups started.. but 3.9% growth..? bloody hell...seems like dying...

Spoke too soon matey.

Yep most of yesterdays loses
on a TECHNICALITY now gained back again.

Expecting shorters to close out adding
to xmas bounce momentum.

Lets fry them lads.

Well done

SGP SUPER GROUP PLC

Stocks with a positive stance on SGP and SP Targets.

Date Company Name Broker Rec. Price Old target price New target price Notes

14 Dec SuperGroup PLC Seymour Pierce Buy 584.50 750.00 - Reiterates
13 Dec SuperGroup PLC Panmure Gordon Buy 584.50 750.00 750.00 Reiterates
12 Dec SuperGroup PLC Peel Hunt Hold 584.50 650.00 - Retains
12 Dec SuperGroup PLC Oriel Securities Hold 584.50 600.00 600.00 Retains
09 Nov SuperGroup PLC HB Markets Buy 584.50 - - Initiates/Starts
08 Nov SuperGroup PLC N+1 Singer Hold 584.50 655.00 655.00 Reiterates
08 Nov SuperGroup PLC Canaccord Genuity Buy 584.50 850 Reiterates

N @ P Building Society.

SuperGroup Plc (SGP)07:43 ET Dec 13, 2012Chief Pulse Comment by Julian Dunkerton

Dunkerton said: "Christmas is on track and I'm feeling pretty good. more
__BREAK1__ Chief executive Julian Dunkerton has had a gaffe free few months after strengthening his team and parting company with former business partner Theo Karpathios. Dunkerton said: "Christmas is on track and I'm feeling pretty good. There are things in the past, blunders, and I feel this is a reiteration of our solidity now..

SGP Supergroup.

Call it self fullfiling etc etc,
but this one SGP looks from a TA and
fibbonaci pov that 700p could be lined
up and pretty sharpish.

hi sticky .... a good spot .... however, my great misgiving with SGP is that it is very illiquid

Hi cyners yes your right but at xmas surely on low volumes we have the advantage???

possibly, but be prepared to duck n dive at short notice ..... meanwhile i've gone (small) short ASC as 2600 seems to be a significant hurdle and, as i have long thought, the rating at 49x 2013 earnings is preposterous

Be careful, cyners. Yep know what you mean about the sky high rating and at some time it will be found out just like any bubble , but is it the time now?.

Missed this one. Comment from the FT
financial editor........


● FT Comment

After enduring a gaff-prone and profit warning-littered year, SuperGroup has shown signs that it has shed its teenager-like attitude towards the City and become more comfortable within its publicly listed skin. After his mea culpa in August, Mr Dunkerton has wisely surrounded himself with an experienced management team that is better placed to harness the brand’s international growth potential. Trading on a reasonable forward price/earnings multiple of 12, the shares are cheaper then Ted Baker on 20 and Mulberry’s 29. But potential investors must be prepared to see their shares yo-yo – a problem exacerbated by SuperGroup’s meagre 37 per cent free float.

on ASC? ..... we'll see, but it's a modest position and they have certainly challenged 2600 on a number of occasions and failed each time

as for SGP, i have had a good look, but it is preposterously illiquid ..... it also happens to be very margin-greedy which is a secondary consideration ..... anyway, i have decided to leave it alone

draw whatever conclusion you like ..... comparative chart below ....

SGP = blue
ASC = red
NXT = green

SGP Underperformed and cheap.

Ill knick that chart cyners cheers.

Cyners Robbie Burns tipped SPG yesterday. 650p SP target.