www.supergroup.co.uk

CANNACORD BUY


Supergroup

We feel this is overdone and offers a strong buying opportunity ahead of the groups Q2 trading update on 7 Nov.


Firstly the group is materially out performing its broad fashion & apparel peer group on a LFL sales growth and wholesale order book basis. Despite this current run-rate of premium growth, FY 2013/14 is a year of investment and the group should see the benefits from its new distribution centre, enhanced design functions and improved online/omni-channel, next year. We expect the next trading update to be positive and highlight a continuation from the Q1 with wholesale order book growth of +26% and LFL sales +8.5%. We feel this provides confidence for >20% in wholesale growth in H1 2013/14 and sustainable LFL sales growth of mid-single digits. The recent interims from Ted Baker, should also point to market share gains from well invested strong brands.

Impact on the Canaccord Genuity view
We see multiple drivers that should combine to offer premium growth over the next few years. We feel the improving sales mix with womanswear growing as a % of the total, continued improvements in retail disciplines and the enhancements made to the senior and operational management teams will begin to deliver improvements. This should support confidence that using the company’s growing cash pile to buy in franchisees will not only provide the foundations to accelerate an owned store presence in Europe but in turn maximise the opportunity to deliver long term shareholder value. The acquisition of the German partner is a key catalyst to this (we could get good news at the Q2 stage) and International sales could account for more than 50% of sales by 2015. We see continued double digit growth (>20%) from online and that does not provide for additional country specific websites (there are already 16), improvements made to its delivery offer and the forthcoming trial in China.



Buy ahead of the next trading update

Broker note out.......

2013 SuperGroup PLC SGP Investec Buy 1,188.50 1,186.00 1,300.00 1,300.00 Reiterates

SP TARGET 1300p

Update tomorrow thurs 7th Nov.

Q2 Trading Update

SuperGroup Plc ("SuperGroup" or "the Group") today provides a trading update covering the 13-week period to 27 October 2013 ("the quarter" or "the period") and the 26-week period to 27 October 2013 ("the half year").

Group
Total Group sales for the quarter increased by 18.5% to £116.6m, a strong trading performance that was in line with management expectations. For the half year, total Group sales increased by 21.1% to £191.6m

Retail division
Total Retail sales in the period were £63.5m, an increase of 20.0% on the comparable period3 last year and for the half year were £116.7m, an increase of 18.8%. Like-for-like2 sales for the quarter were up 7.8%, and up 8.1% for the half year.

During the quarter the Group added 33,000 square feet of owned retail space4 taking the total to 573,000 square feet, a year-on-year increase of 17%. In the UK, the Group opened three new stores, and acquired two third-party franchise stores which were incorporated into the owned store estate. In addition two further stores were opened in Europe, one in Belgium and the other a 7,000 square feet store located in the Aeroville out-of-town development north of Paris.

The new warehouse operation in Burton-upon-Trent completed its first stock intake and began despatches at the beginning of October as planned and this project remains on track and on budget.

Wholesale division
Wholesale sales for the period were £53.1m, an increase of 16.7% on the prior year and for the half year were £74.9m, an increase of 24.8%. As noted in the Q1 IMS, reported revenues on a quarter-by-quarter basis are influenced by the timing of dispatches, particularly over the quarter-end. However, the half year revenue growth is in line with the previously published order book guidance.

The portfolio of franchised locations has increased by a further net 19 stores during the quarter, and a net 31 stores in the half year, to 173 stores. 21 franchised stores were opened during the period in: Austria (two), Denmark, France (two), Germany, Italy, India, Indonesia, Macau, Netherlands, Norway, Spain (two), Switzerland (four), Turkey (two) and UAE, whilst two franchised stores in Newcastle were acquired and included in the owned estate.

Germany agency acquisition
On 31 October 2013 a deal to take control of the agency operation in Germany was completed. The Group acquired seven stores and the rights to the German market for a consideration5 of £3.5 million of which £0.7 million will be settled in shares. This acquisition will allow the Group to benefit from improved Wholesale margins, accelerate the roll-out of German stores by investing its own capital, and retain the local operational and management expertise.

Julian Dunkerton, Chief Executive Officer, commented:

"We have delivered another strong trading performance, which has seen good sales growth in both the Retail and Wholesale divisions. At the same time as delivering revenue growth we continue to build the platform to support our strategy and I am pleased to report that the Group remains on track with its infrastructure investments.

"E-commerce sales from Europe and the Rest of the World have now overtaken those from the UK reinforcing our view of the international appeal of the Superdry brand, an important step in delivering our international strategy.

"Our trading performance, the positive customer reaction to new product ranges and the preparation ahead of peak trading, provides me with confidence in our ability to meet market expectations."

Fantastic results.

07 Nov 2013 SuperGroup PLC SGP Canaccord Genuity Buy 1,206.00 1,206.00 - 1,530.00 Reiterates

SP TARGET 1530p

Investec analyst Kate Calvert said on the results: "Another fabulous quarter from SuperGroup, slightly ahead of our expectations, with good momentum in all areas confirming the continuing brand appeal." Through its 173 stores, website, licences and concessions, SuperDry is sold in over 100 countries. After rising by more than 230 percent within 11 months of its IPO in early 2010, shares in SuperGroup came back down to earth in mid 2012, but have risen by 116 percent since the start of the year. They closed at 1,206 pence on Wednesday, valuing the company at 968 million pounds ($1.56 billion). ($1 = 0.6219 British pounds) (Reporting By Joshua Franklin; Editing by David Cowell) ((joshua.franklin@thomsonreuters.com)) Keywords: SUPERGROUP

SuperGroup posts rise in sales, says confident of meeting expectations07 Nov 2013 - 08:01

LONDON, Nov 7 (Reuters) - SuperGroup, the British company behind the SuperDry fashion brand, lifted retail sales by 20 percent in the second quarter and said it was confident of meeting market expectations. Retail sales for the 13 weeks to Oct. 27 were 63.5 million pounds ($102.1 million) and wholesale sales rose by 16.7 percent on the comparable period last year to 53.1 million pounds ($85.38 million). Retail sales for the for the first half of the year were 116.7 million pounds ($187.64 million), up 18.8 percent, and wholesale figures for that period were up 24.8 percent to 74.6 million pounds ($120 million). "We have delivered another strong trading performance, which has seen good sales growth in both the retail and wholesale divisions," Chief Executive and co-founder Julian Dunkerton said on Thursday. Dunkerton, who started his career in retail selling jeans on a market stall aged 19, added he was confident about meeting market expectations

Canaccord Genuity Reiterates “Buy” Rating for SuperGroup (SGP)
Posted by Stuart Ham on Nov 7th, 2013

SuperGroup (LON:SGP)‘s stock had its “buy” rating reiterated by investment analysts at Canaccord Genuity in a note issued to investors on Thursday, American Banking and Market News reports. They currently have a GBX 1,530 ($24.53) target price on the stock. Canaccord Genuity’s target price would indicate a potential upside of 27.05% from the stock’s previous close.

Shares of SuperGroup (LON:SGP) opened at 1236.00 on Thursday. SuperGroup has a 52 week low of GBX 532.682 and a 52 week high of GBX 1248.00. The stock’s 50-day moving average is GBX 1139. and its 200-day moving average is GBX 963.0. The company’s market cap is £994.4 million.

A number of other firms have also recently commented on SGP. Analysts at Cantor Fitzgerald reiterated a “buy” rating on shares of SuperGroup in a research note to investors on Friday, November 1st. They now have a GBX 1,400 ($22.44) price target on the stock. Separately, analysts at Investec reiterated a “buy” rating on shares of SuperGroup in a research note to investors on Thursday, October 24th. They now have a GBX 1,300 ($20.84) price target on the stock. Finally, analysts at Numis Securities Ltd reiterated a “hold” rating on shares of SuperGroup in a research note to investors on Thursday, October 17th. They now have a GBX 1,175 ($18.84) price target on the stock. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and six have issued a buy rating to the stock. The stock has an average rating of “Hold” and a consensus target price of GBX 1,075.92 ($17.25).

SuperGroup Plc, formerly DKH Clothing Plc. is United Kingdom-based retailer. It focuses on the youth fashion market with its clothing and accessories for both men and women

Big seller out to play again knocking out AT sells....drat.

not surprised - sp hitting all-time high point .... just a case (i think) of sitting tight

here here. Commented on Chart thread.

Another broker update........

07 Nov 2013 SuperGroup PLC SGP Investec Buy 1,211.50 1,206.00 1,300.00 1,500.00 Reiterates

SP target 1500p.

By Giles Gwinnett
December 11 2013, 6:27pm
Thursday's Agenda - Supergroup making eyecatching progress in womenswear


Fashion firm SuperGroup (LON:SGP) posts interims Thursday and broker Oriel is looking for continued good form. Its shares are "ones to own", it says.

"The core menswear range continues to evolve but the eye-catching progress is being made in womenswear, where new designers and merchandising techniques are having an effect," it said.

"A much better accessories range should also have a disproportionately positive effect over Christmas. Longer term, the brand is starting to gain presence globally, and buy-ins of licenses and franchises will continue," said Oriel.

City firm Peel Hunt forecasts half-year profit before tax of £17.8mln, up 22% year-on-year, for the firm behind the Superdry brand.

Interim Results

Financial highlights:
· Retail revenue up 19.3%; like-for-like sales growth 8.1%;
· Full price internet sales up 29.3%, strong performances in key European markets supported by significant developments to the e-commerce sites;
· Wholesale revenue up 25.0%;
· Improved divisional operating margins; and
· Underlying profit before income tax up 21.8%.

Operational highlights:
· Infrastructure and systems investment projects are on track and on budget;
· Improved womenswear ranges support sales growth;
· 8 new owned stores opened adding 38,000 square feet to the portfolio;
· 35 new international franchised and licensed stores taking the total to net 192 stores; and
· First 8 Spanish concessions opened in El Cortes Ingles department stores.

Hold tight for 1500p.

one of friend sticky's recommendations a few weeks back :-)

it's a strange old share and company this one, and i'm glad it's never appealed to me

Preliminary Results

FINANCIAL HIGHLIGHTS

· Group revenue up 19.6% to £430.9m
· Group gross margin up 140 basis points to 59.7%
· Underlying2 profit before tax up 18.8% to £62.0m
· Underlying2 earnings per share of 58.0p (2013: 47.8p)
· Basic earnings per share of 34.0p (2013: 44.7p)
· Net cash generated from operations of £64.3m (2013: £38.3m)
· Year-end net cash position up 58% to £86.2m (2013: £54.5m)


OPERATIONAL HIGHLIGHTS

· Opened around 100,000 square feet of trading space taking the UK and European retail portfolio to 633,000 square feet (+18%), in-line with guidance.
· Net increase of 46 international franchised and licensed stores during the year taking the total to 208 (2013: 162).
· Retail sales growth of +17.7%; LFL sales growth of +3.2%.
· Wholesale sales growth of +23.3% in-line with the order books (2013: +7.4%).

STRATEGY HIGHLIGHTS

· Germany: Bought-out the agency operation and acquired seven franchise stores giving the Group the rights to open its own retail stores.
· Spain: Bought-out the Spanish agency and subsequently opened 10 El Cortes Ingles concessions. Further progress made on building a stronger wholesale platform.
· Post balance sheet event: Acquired SMAC Group, the Group's long term Scandinavian distributor.
· New central warehouse operation in Burton upon Trent opened and operating successfully.
· New merchandise management system, HR and payroll systems implemented and a new point of sale system currently being rolled out throughout the estate.

LONDON, Oct 22 (Reuters) - SuperGroup Plc SGP.L , the
British company behind the Superdry fashion brand, named
ex-Co-op Group boss Euan Sutherland as its new chief executive
on Wednesday, replacing Julian Dunkerton who founded the company
on a market stall 30 years ago.
Sutherland, who has more than 19 years experience in the
retail sector with roles at the likes of home improvement chain
B&Q, electricals group Dixons DC.L and fizzy drinks maker
Coca-Cola KO.N , had been a non-executive director at
SuperGroup for two years and will be charged with overseeing its
international expansion.
Dunkerton, who started the business in 1985 on a market
stall in Cheltenham, southwest England, before floating it on
the stock market in 2010, will move to the new role of founder
and product and brand director with immediate effect.
"With the number of opportunities SuperGroup has available
and the increasing complexity of the business, now is the right
time to bring in a CEO of Euan's calibre," Dunkerton said in a
statement.
Shares in the firm, whose trademark jackets, hooded tops,
check shirts and jogging bottoms are popular with
twentysomethings as well as celebrities such as David Beckham,
were down 3.5 percent to 992p at 0740 GMT. They fell as low as
986p, their lowest level since August.
Dunkerton, who still holds a 32.22 percent stake in the
company, will focus on developing the group's product ranges and
protecting its brand as it expands internationally.
"Really it is the creative side that I feel I add best
value. So to deliver the huge international opportunity that we
have, this was the most logical decision that I could possibly
make, personally and for the business," Dunkerton told Reuters.

EXPANSION EVERYWHERE
Superdry products are sold in more than 100 countries via
its 135 UK and European standalone retail stores, as well as via
concessions, franchised and licensed stores and its website.
The firm has said it has expansion plans "everywhere", with
the main focus of a European rollout on Germany and markets such
as the United States and China offering big potential.
Sutherland, who quit as boss of the embattled Co-Op group in
March after just 10 months in the role, describing the company
as an "ungovernable" organisation, said he was relishing the
chance to plot SuperGroup's expansion over the next five to 10
years. ID:nL6N0M810Z
"There is a tremendous set of opportunities ahead of us," he
told Reuters, adding he was sat almost "head-to-toe" in Superdry
gear.
Analyst Kate Calvert at brokerage Investec welcomed the
management shuffle and reiterated her "buy" rating on the stock,
although she cut her full-year pretax profit forecast by 4
percent to due the mild start to the autumn season that has
affected demand for warm clothing at a number of retailers.
"Euan has a formidable retail reputation and a wealth of
experience. We believe this shuffle gives insight into the
board's thinking on the future brand opportunity as it
internationalises," Calvert said.
Last month SuperGroup forecast a year of profit growth, as
sales rose 16 percent in its first quarter, and it said its
autumn-winter season had started well. ID:nL5N0R50QC
(1 US dollar = 0.6205 British pound)

(Editing by Kate Holton and David Holmes)
((neil.maidment@thomsonreuters.com; +44)(0207 542 2292; Reuters