www.supergroup.co.uk

On Tuesday, Supergroup, the "too much, too soon" stock market story of recent years, takes another step in its attempt to repair relationships with the City.

Chief Executive and co-founder of SuperGroup Theo Karpathios abruptly quit his position in the middle of August to 'take on new challenges,' having presumably got fed up dealing with the surfeit of "old challenges" at the trendy clothing firm, which has had more than its share of teething troubles since floating on the stock exchange.

To make matters harder for the firm, the trading statement covers the first quarter (Q1) of its financial year, which last year was a bumper period for the fast-growing firm, in which like-for-like (LFL) retail sales growth of 14.4% year-on-year was achieved.

"We forecast retail sales growth of around 15% and wholesale sales growth of around 5% for Q1 2012/13, which implies group quarterly revenue growth of c.11%," Panmure Gordon said, adding that it thinks the market is slowly regaining trust in the company's management.

The broker reckons the shares are worth holding, if you already have them. "We await further evidence that our gut feel (of stronger management in the form of a new FD [finance director] and, especially, a new COO [chief operating officer) is correct before moving to a more positive stance," Panmure Gordon's Jean Roche said.

Just as fellow fashionista Burberry was falling on an effective profit warnings, SuperGroup -- the owner of the Superdry brand -- saw its shares perk up by 33p (6.2%) to 564p. Again, it was an interim update that did it, but this time it was all positive with total sales for the first quarter up 10% to £59.7m, and the company is on course to meet its financial objectives.

The shares are still way down on the year, but since the middle of June they've more than doubled from a 2012 low of 264p.

Moving up nicely now

Sold my holding

Results tomorrow....

SuperGroup Plc (SGP)Nov 23, 2012Analyst Comment by Frederick George at Seymour Pierce

Seymour's retail analyst Freddie George, who knows and holds Sutherland "in high regard", reckons the company behind the SuperDry brand has significant potential to develop and boost profitability overseas with the likely tidy up of its complex international make up. more
. It comes on the back of a change to its board as Minnow Powell, a former Deloitte partner, and Euan Sutherland, current chief operating officer at B&Q owner Kingfisher ( LON:KGF) were appointed as non executive directors. . Seymour's retail analyst Freddie George, who knows and holds Sutherland "in high regard", reckons the company behind the SuperDry brand has significant potential to develop and boost profitability overseas with the likely tidy up of its complex international make up. .

From IC week ahead....

A recently steady performance at fashion retailer SuperGroup (SPG) should allow the group to reveal a decent set of half-year figures on 12 December. In particular, the company has been expanding its UK store portfolio and is looking to improve profitability overseas while also boosting internet sales. In fact, a second-quarter trading update last month reported that group sales had increased 20.3 per cent on the same period last year, as cooler weather boosted sales of coats and hoodies. Second quarter retail like-for-like sales rose by a healthy 5.8 per cent, while the wholesale unit's sales, on a constant currency basis, grew 14.4 per cent in that period. At 609p, the shares have slipped around 12 per cent since mid-November and, trading on 12 times broker Seymour Pierce's full-year EPS estimate of 51p (2012: 37.9p), aren't demandingly rated for a decently performing retailer.

SUPER results.....

Highlights



· Group revenue up 16.2% to £158.2m.

· Retail revenue up 26.4%; like-for-like2 sales growth 3.9% (2011: 4.0%).

· International expansion: 37 franchise and licensed stores opened including the first franchise store in India.

· Internet now represents 10.2%3 of Group revenue (2011: 8.2%).

· International websites launched in Canada, Switzerland, Spain and Italy.

· 90 bps gross margin improvement, reflecting falling cotton prices and improved supplier terms.

· Underlying1 PBT up 13.1%.



Current trading & outlook



In the six weeks since the end of the period the Group has performed broadly in line with internal expectations and generated positive like-for-like retail sales.



Although the consumer climate remains challenging and the Group is trading against a strong December sales performance last year, which saw like-for-like sales at +9.3%, the Superdry stores are well positioned ahead of this year's peak trading period.

http://www.investegate.co.uk/supergroup-plc-(sgp)/rns/interim-results/201212120700073064T/

Profits rise
"LONDON (Reuters) - SuperGroup (SGP.L), the British company behind the Superdry fashion brand, posted a 13 percent rise in first-half profit, helping to rebuild management credibility after a string of profit warnings in the previous year.

The group, whose celebrity fans include royal favourite Pippa Middleton and singer Ed Sheeran, said on Wednesday it made an underlying pretax profit of 14.7 million pounds ($23.7 million) in the six months to October 28.

That was in line with analysts' expectations and up from 13.0 million pounds made in the same period last year.

SuperGroup said total sales of its trademark T-shirts, hooded tops, check shirts and jogging bottoms rose 16.2 percent to 158.2 million pounds, as the firm started to benefit from strengthened and broader product ranges as well as systems and operational improvements.

In the first six weeks of the second half the group has performed broadly in line with internal expectations and generated positive like-for-like retail sales, it said." Reuters

UPDATE 1-SuperGroup on recovery path with profit rise12 Dec 2012 - 07:36

* H1 underlying pretax profit 14.7 mln stg, up 13 pct * H1 total sales 158.2 mln stg, up 16.2 mln stg * Gross margin up 90 basis points * 1st 6 weeks of H2 trading broadly in line with internal hopes * Confident will make full-year profit target (Adds detail) LONDON, Dec 12 (Reuters) - SuperGroup , the British company behind the Superdry fashion brand, posted a 13 percent rise in first-half profit, helping to rebuild management credibility after a string of profit warnings in the previous year. The group, whose celebrity fans include royal favourite Pippa Middleton and singer Ed Sheeran, said on Wednesday it made an underlying pretax profit of 14.7 million pounds ($23.7 million) in the six months to Oct. 28. That was in line with analysts' expectations and up from 13.0 million pounds made in the same period last year. SuperGroup said total sales of its trademark T-shirts, hooded tops, check shirts and jogging bottoms rose 16.2 percent to 158.2 million pounds, as the firm started to benefit from strengthened and broader product ranges as well as systems and operational improvements. Gross margin rose 90 basis points, reflecting falling cotton prices and improved supplier terms. Sales at UK stores open over a year were up 3.9 percent, while group wholesale sales increased 7.9 percent on a constant currency basis. In the first six weeks of the second half the group has performed broadly in line with internal expectations and generated positive like-for-like retail sales, it said. “The economic outlook remains uncertain but I am confident in our strategy and our ability to maximise the opportunities we have in the UK and internationally and deliver our full year profit targets," said Chief Executive Julian Dunkerton. With Britain facing the prospect of a triple-dip recession, many retailers have been finding the going tough as consumers fret over job security and a squeeze on incomes. SuperGroup has not been immune to the economic downturn. SuperGroup shares have had a roller-coaster ride since their stock market debut in 2010. After listing at 500 pence the shares rocketed to a high of 1,899 pence in early 2011. But three profit warnings and a litany of management mistakes, including stock availability issues, the botched implementation of a warehouse IT system and “arithmetic errors", led to a dramatic reverse before a partial recovery since the summer. The stock closed Tuesday at 597 pence, valuing the business at 479 million pounds. ($1 = 0.6210 British pounds) (Reporting by James Davey; editing by Rhys Jones) ((james.davey@thomsonreuters.com)(+44 20 7542 7674)(Reuters Messaging: james.davey.thomsonreuters.com@reuters.net)) Keywords: SUPERGROUP RESULTS

SuperGroup share slide perplexes brokers
9:39 am by John Harrington "The economic outlook remains uncertain but I am confident in our strategy and our ability to maximise the opportunities we have in the UK and internationally and deliver our full year profit targets," said Julian Dunkerton, SuperGroup's CEO

Shares in SuperGroup (LON:SGP) were at half-mast in early trading following the fashion firm’s interim results, much to the bafflement of some investment analysts.

Well regarded retail analyst Nick Bubb notes that, having already released half-year sales figures last month, there was no real room for surprises with today’s interims.

“Most interest was in the current trading update, and this is reassuring, with Retail LFL [like-for-like] sales said to be still positive, despite tougher comparatives, and CEO Julian Dunkerton is confident about the full-year outlook. There is no indication, however, of how much help the cold weather has been or how much the figures are boosted by Online sales,” Bubb observed.

Peel Hunt, meanwhile, is making no change to its earnings estimates and is sticking with its ‘hold’ rating.

Panmure Gordon is positively upbeat about the shares and has reiterated its ‘buy’ recommendation. It says the numbers are better than expected, with underlying pre-tax profit of £14.7mln, versus consensus expectations of £14.3mln. Having said that, Panmure Gordon had forecast interim pre-tax profit would be £15.1mln.

Retail operating profit, at £7.1mln, is less than the £11.9mln Panmure Gordon expected, due to clearance activity (partly mitigated by input cost improvements) and warehousing costs. The underlying operating margin decline here is two percentage points, the broker notes.

Some have speculated that the lack of an interim dividend might have been the cause of this morning’s share price fall – the market is expecting a maiden full-year dividend of 4.36p – but Panmure Gordon said the lack of a divi was expected.

“If there is a fly in the ointment, it is the fact that distribution costs continue to be a problem in the retail division – the company expects this to take a year or so to resolve. However, international expansion is well ahead of plan, at 45 new stores vs. full year target of 30(!),” Panmure Gordon notes.

Selling, general and administrative expenses rose to £79.5mln from £57.1mln at the halfway point last year.

Shares were down 47p (7.9%) to 549.6p in the first two hours of trading.

Broker Seymour Pierce says BUY SuperGroup (SGP LN) with a 750p price target. Says the interim results to end Oct were in line with market expectations. Results are starting to benefit from a visible strengthening and broadening of the ranges, particularly in denim, knitwear and outerwear. In view of the business opportunities and greater confidence in the existing management structure and strength of balance sheet – the company could have net cash of £40m by April 2013 - believes the stock is undervalued.

Just wondering if these brokers have to higher expectations ? There has what I think been some brilliant sets of results out in the past few weeks and the company's are not putting on 1% rise in the sp on the day. Strange times we are in.

SuperGroup Plc (SGP)03:52 ET Dec 12, 2012Chief Pulse Comment by Julian Dunkerton

SuperGroup chief executive Julian Dunkerton said: "Although the trading environment has remained challenging and volatile, the group's sales performance in the first half of the year has been encouraging.". more
However, this performance was flattered by soft sales in the previous year, when the company was hit by problems with new warehouse management systems. SuperGroup chief executive Julian Dunkerton said: "Although the trading environment has remained challenging and volatile, the group's sales performance in the first half of the year has been encouraging.". He added: "The economic outlook remains uncertain but I am confident in our strategy and our ability to maximise the opportunities we have in the UK and internationally and deliver our full year profit targets.". The company said group revenues were up 16% to £158.2 million in the period as it opened three new stores and closed one store in the UK and Ireland

Guardian comment

http://www.guardian.co.uk/business/2012/dec/12/supergroup-profits-rise-sales-cotton-superdry

Sharecast comment

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=20560918

Radio Citys take......

http://www.radiocity.co.uk/news/business/20121212-supergroup-s-profits-up-after-sales-boost

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.