Full-year profits for fashion retailer Supergroup have more than doubled year-on-year, according to full year results posted today.
Profit-before-tax (PBT) for the trader grew 110 per cent to £47.3 million in the 52 weeks to May 1st 2011, as revenues jumped 71 per cent to £237.9 million during the period.
The meteoric rise in trading for the company, which owns the Superdry youth brand, means underlying basic earnings per share for the group ending at 45.2 pence.
International expansion was a key feature of the year for the UK firm, with 44 global franchise and licensed stores opening during the year.
Julian Dunkerton, CEO of Supergroup, commented: “I am pleased to say that we have had a successful year, delivering strong financial results in a challenging retail environment and have made significant progress across a number of key areas.
“Our international franchise operation goes from strength to strength and following our acquisition of Supergroup Europe BVBA in February, we are accelerating our European roll-out.”
In the UK 21 new stores were opened, three of which were relocations, bring its total in the country to 60 properties and a lease was also acquired to open a new flagship store on London’s prestigious Regents Street which should open before May 2012.
Internet sales trebled in the year and now represent eight per cent of group revenues, double their contribution in 2010.
“Our UK store roll-out is firmly on track with the addition of a number of prime locations, including one of London’s most iconic and prestigious stores in Regent Street,” Dunkerton continued.
“We remain confident in our strategy and in the ongoing potential for the Superdry brand, both at home and internationally.”
Supergroup’s fast ascent up the retail mountain had worried some investors that its high share price had become bloated and unsustainable, and this view seemed to be confirmed by a slowdown in trade in Q4.
Retail sales growth slowed to 39 per cent during the last quarter but has responded strongly in 10 weeks ending July 10th 2011, up 48 per cent compared to last year.
Nick Bubb, retail analyst at Arden Partners, commented: “The year has got off to a good start and we think group PBT is on track for £70 million, despite input cost pressures.
“This should squeeze the bears (the shares have jumped by 12 per cent first thing) and we are happy with our 1600p price target so we maintain a strong buy.”
The retailer intends to open a minimum of 50 franchise stores globally in 2012, it has already opened three standalone outlets in the UK and hopes to add an additional 17 before the end of the current financial year.