www.supergroup.co.uk

hardly! ... but anyway, i am satisfied that this is not one for me to jump into

Supergroup performance "represents a return to form"


By Darshini Shah | Thu, 11th July 2013 - 11:28

Supergroup (SGP) added 5% on Thursday as the clothing retailer unveiled full-year results that beat market expectations.

Expressing confidence that there were "significant opportunities for growth across all channels and geographies", Supergroup chief executive Julian Dunkerton boasted that the "financial performance for the year represents a return to form for the group".

For the 52 weeks ended 28 April, Supergroup reported a retail operating profit of £46.2 million, compared to £38 million made in 2012. In the wholesale division, operating profit came in at £35.6 million versus £31.4 million in 2012. Group EBIT jumped 21.5% to £51.9 million.

Underlying pre-tax profit of £52.2 million was higher than consensus expectations of £51.3 million, with the beat attributed to stronger-than-expected gross margins of 130 basis points.

"The guidance at [the fourth quarter] was towards the top of the 50-75 basis points range, so 130 basis points is a very nice surprise, and more than offsets higher-than-expected central costs," stated Jean Roche, analyst at Panmure Gordon.

Looking ahead, guidance is for flat gross margins and space growth of between 80,000 and 100,000 square feet, of which 70% is likely to be in the UK, with the balance in Europe. "Over three years, the new space will naturally move towards being more European weighted, which is what we heard at the analyst teach in of early June," commented Roche.

Capital expenditure was expected to come at around £30 million in 2014, with management guiding to c. 50 franchised stores over the next year.

Analyst views

Roche predicted that 2014 forecasts were likely to be upgraded to the tune of 3-5% on the back of Thursday's results due to "positive comments on current trading, success in buying out the first of a number of local distributors and strong online sales growth".

She also pointed out that the stock was trading on a 2014 price/earnings (P/E) ratio of between 13.5 and 14 times, a discount to the UK General Retail peers, which were trading on an average ratio of between 16 and 17 times.

Roche concluded: "With a PEG (P/E to growth) ratio below one times, we remain buyers of Supergroup shares and raise our target price to 934p from 898p."

Bethany Hocking, an analyst at Investec, also reiterated her 'buy' recommendation, with her positive stance predominantly driven by the international expansion, which she believes "should be taken well".

Peach of a day.

as you were already a holder, then certainly not a bad one, but like i said, i am far from convinced that sp is heading back to the stars from whence it fell a couple of years back - which is why i did not sup

Expecting another cracking day tomorrow.

Newspapers should be full of the record news.

Strong store growth and success with womenswear help push sales up 15% at Supergroup PLC (LON:SPG).

SuperGroup (LSE: SGP) reported strong 15% growth in sales for its fiscal 2013, while underlying profits (ignoring non-cash and non-operating gains and losses) were up 25%.

Same store sales (sales at stores open for at least a year so meaningful comparisons can be made) were up 5.7% and the group opened 10 owned stores and 53 franchised stores during the year -- with the franchises mainly in Asia and the Middle East.

Sales were helped by the success of the growing women's lineup and the translation of the online store into 10 new local language sites. Online sales grew 28% and now make up over 11% of total sales.

The company's rapid growth in recent years led to some growing pains in fiscal 2012 when inventory issues resulted in lost sales and some management blunders resulted in a shake-up at the top -- and a dramatic drop in the share price.

SuperGroup has continued to invest in its management team -- bringing in General Counsel and a Financial Controller, Directors of IT and HR, a Managing Director for the International and Wholesale operations, as well as Heads of Logistics, UK/Ireland Retail and Women's Design.

SuperGroup also signed an agreement with a logistics partner to help handle the company's warehouse and distribution operations which will become even more important as the online store is rolled out to more than 16 countries and all the orders will be fulfilled from here in the UK.

Trading on a P/E of 19, the shares may appear a bit pricey, but last year's growth -- as well as management's investment in future growth -- would seem to justify a premium. With the shares well down from their ridiculous highs of early 2011 and plenty of positive signs and seemingly lots of room to grow, the shares might be worth a look for those growth-inclined investors out there.

And if you are a growth-inclined investor you'll want to check out The Motley Fool's favourite growth share for 2013.

http://www.fool.co.uk/news/investing/company-comment/2013/07/11/profits-up-25-at-supergroup-plc.aspx

Up again on a poor day.

Bet cynic is kicking himself.

£18 grand in profit now. Wish id put more on. Drat.

don't talk rubbish sticky ..... i am not even remotely upset any more than i remotely believe you are £18k to the good here

Your just jealous.

LOADS ERR MONEY.

thrupppppp

in your dreams pal :-)

"Here we go again happy as can be lots of lovely doe for happy me.....tra lal la la".

Whats that 6 days up on the trot.

ohhh dear cyners, when will you learn.

don't be so arrogant young man! ..... funny old thing hindsight, isn't it :-)
and if i were to be mug enough to jump in now, you know that'ld demolish your profit in very short order :-)

£10 a share now lubbly jubbly.

quite right, and well done ..... just don't forget to bank prudently!

Only time I use a stop is a following or a tight stop on trying to get on board a winning trade.

Never use stops as they are supposed to be used.

For me they were made for MMs to make money out of mugs.

Lovely chart here just look at the incline.

Moving up high high higher......

http://www.youtube.com/watch?v=6lo7BjX6WXg

Goes from strength to strength.

Investec Buy 1,228.00 1,159.00 893.00 1,300.00 Reiterates

Canaccord Genuity Buy 1,228.00 1,159.00 1,100.00 1,500.00 Reiterates

Numis Hold 1,228.00 1,159.00 - 1,100.00 Retains

N+1 Singer Hold 1,228.00 1,159.00 - 1,000.00 Reiterates

thanks sticky
yes i did this morning, arguably a little high but already in the money