www.supergroup.co.uk

Good job the Interim Management Statement wasn't bad!

i traded SGP a couple of times, and fortunately profitably .... however, i came to the conclusion that it was far too illiquid and dangerous - indeed, even more so that ASC

Half price.

Nice bounce due to paper positive comment.

OVER 1050p

and asc (red) looks ever more over-priced to me

5 DAYS

OVER 1100p

Biggest faller this am.

RNS Number : 5651P

SuperGroup PLC

05 October 2011

SuperGroup Plc

Update

SuperGroup Plc ('SuperGroup' or 'The Group'), owner of the Superdry brand and one of the fastest growing international branded clothing companies, announces the following update.

At the end of August SuperGroup implemented an upgrade programme to its warehouse management systems to increase capacity and efficiency at its Barnwood site to meet future growth in demand. Once live, the business encountered some short-term issues in the transition which has caused a significant, temporary reduction both in the amount of stock and range of sizes reaching its UK stores.

SuperGroup's international and wholesale operations are not affected.

The Group has reacted swiftly to resolve the situation. Whilst the majority of the system issues have been rectified, some are still ongoing. Temporary warehouse facilities have been commissioned to address capacity requirements. It is anticipated that our distribution capability will have returned to normal levels of operation and have been fully upgraded with additional capability and efficiency in November. We estimate that the total cost of this isolated event, including the additional temporary warehousing capability and resulting lost sales during the period, will impact the current year's profitability by between GBP6-9 million. Stock levels will also increase by c.GBP2 million.

During this period we continue to see ongoing appeal for the Superdry brand in the UK, internationally and online. Our new UK store opening programme is likely to be at the upper end of Q2 guidance with eight new stores opened since the beginning of our financial year. Our international opening programme and growth plans remain on track. Whilst the issues outlined above are an unwelcome temporary set-back, these changes to our warehouse management systems are vital in supporting the significant growth we continue to experience in the business. Our strategy is unchanged and we have a high level of confidence in the Group's future growth prospects.

SuperGroup will be hosting a conference call for analysts AND INVESTORS at 0830 HOURS BST today. Please call Jamie Ramsay at College Hill for dial-in details on 020 7457 2047 or email jamie.ramsay@collegehill.com

5 October 2011

watching them..wishing them well ..statement 66% forward ..nice recovering.. then bang! and another big cockup in management..they cant do these things..specially in this full of fear market.red flag.
btw nice chart compare with asc... mean anything valuable ?

i see no logic at all in buying into uk retailers, whether high street or on-line - that applies equally to ASC and NXT as well as SGP - it's just pissing against the wind

ITS ALL ABOUT TIME ING, INIT.

indeed, but i think the timing is "not now"!

Timing.

You may or may not have heard of SuperGroup . It is a clothes retailer whose main brand is Superdry, a fashion label that combines faux Japanese lettering and vintage Americana fabrics and has been the height of cool in the past few years.

Back in the spring of 2010, SuperGroup shares were launched in an IPO at a price of £5. The shares then proceeded to rocket to £18 in early 2011 as the company's high-growth model was flavour of the month.

But the business has endured a torrid time over the past year. In May 2011 shares slumped because the retailer failed to get enough summer clothing into their stores as the UK went through a heatwave.

Then, in October of last year, SuperGroup had problems at a distribution warehouse, which resulted in shops getting too little stock and the wrong size stock. The total hit from this mistake was estimated at £9 million.

The net result of these gaffes was that the share price collapsed. From the peak of £18 in February of last year, the share price hit a low of 440p in November 2011. Quite simply, the short-sellers have had an absolute field day with this share.

But now that SuperGroup has been shorted to oblivion, it's worth taking a second look at the company. In my view, the fundamentals that made the firm so appealing a year ago still apply.

Still a great growth story

This is still a company with a strong brand, a brilliant design team and a great growth story. It aims to open 20 stores in the UK and 50 overseas in the financial year to April 2012. It is growing revenue and profit by around 40% a year.

The long-term goal is to have 150 stores in the UK; there are currently 80. Plus the scope for growth abroad is even greater -- already two thirds of sales are generated overseas, and I expect this proportion to increase. After all, the business is still to get a solid foothold in markets like China, the US and Germany. Suffice to say, there is a lot more growth to come from SuperGroup.

Admittedly, it is probably this rapid rate of growth which led to the warehousing difficulties. But SuperGroup is still a young company, and perhaps it is inevitable that it will have some teething problems. I am hopeful that these will be ironed out over time.

The brand isn't losing its lustre

But the real clincher for me came in the Christmas trading statement. Many SuperGroup bears have been saying that the fashion appeal of the retailer was bound to fade.

But I think the simplest proof about whether or not a brand or a company remains popular is like-for-like sales. And the Christmas trading statement said that like-for-like sales in December were up 9.3%. That is impressive, and is clear evidence that the Superdry brand is a long way from losing its lustre.

No wonder the share price has been rocketing recently. In the past six weeks it has risen a phenomenal 40%. And if you haven't jumped on board yet, I think the share price has further to go.

There are a couple of provisos. SuperGroup shares have a reputation for being volatile, so if you do get on board you should be prepared for a bumpy ride. Also, the firm needs to convince investors that it can manage its growth without making any more gaffes.

How do I sum up? Well, the current share price of 636p puts the company on a forward P/E multiple of just 11 -- and, remember, that is after the 40% rise. For a business that is growing at around 40% a year, that still looks cheap to me

There is only one Supergroup and that's Cream :-)