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Supergroup sales up 23% despite warehouse problems

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Operational issues at Supergroup’s UK distribution centre have impacted on its recent trading but the youth fashion retail group still managed to today post a total group sales rise of 42 per cent for its last quarter period.

In the three months to October 30th 2011, the retailer, which owns the high flying Superdry brand, saw retail sales improve 23 per cent year-on-year to £40 million and wholesale trading jump 67 per cent in the same period.

The implementation of a new warehouse management system went wrong earlier in the year due to an IT glitch, and it was previously confirmed that the problem would cost the retailer between £6 million and £9 million to its full-year balance sheet.

Julian Dunkerton, CEO of Supergroup, said: “While this has been a demanding period for Supergroup logistically, we are well on the road to rectifying the situation and have learned valuable lessons in the process.

“These changes to our UK distribution capability are vital to the future success of this business. Additionally, as we grow we will continue to strengthen our systems, infrastructure and management team across the business to support our future requirements.”

Despite its distribution woes the UK-based firm is still seeing considerable growth across its operations, with 12 new domestic stores opening in the half, 11 wholesale Superdry outlets opening internationally over the period and another four stores scheduled before Christmas.

In the year-to-date total group sales have risen 51 per cent to £136 million and full-year profit before tax although revised down from initial estimates should comfortably pass £60 million.

Dunkerton added: “The broader macro and consumer environment remains uncertain.

“However, we look forward to the peak season with a growing portfolio of stores both in the UK and internationally and confidence in the future growth of the business.”

Published on Wednesday 09 November by Editorial Assistant

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