Youth fashion retailer Supergroup has today reported a five per cent rise in like-for-like (LFL) sales in its fourth quarter as it prepares for a European push.
In the 13 weeks ended April 28th 2013, total group sales jumped 13.5 per cent to £86.8 million while total retail sales climbed 10.9 per cent to £43.8 million over the period.
Over the full year, total group sales increased 14.7 per cent to £360.1 million as LFLs grew by 6.9 per cent on the same period last year.
Commenting on the strong results, Supergroup CEO Julian Dunkerton said: “I am pleased that the fourth quarter has seen a good trading performance against the backdrop of a challenging market given the extended period of cold weather in early spring.
“We have delivered solid sales and profit growth this year at the same time as enhancing financial and operational processes.
“In addition we have made significant progress with developing our product ranges, especially the improvements in womenswear styling.”
Supergroup added 66,000 sq ft to its portfolio over the year including a store in Paris and a northern flagship at recently-opened shopping centre Trinity Leeds as is set to increase its “European presence” in the months ahead.
Franchise development is also part of the retailer’s strategy and such locations increased by a net five over the quarter to 144 as stores were opened in France, Spain, Denmark, India and Lebanon, offsetting closures in Italy and Jordan.
Additional expansion is planned for 2014 and the group has found renewed confidence in its ability to deliver internationally after overcoming long-running problems with logistics and IT systems in recent times.
However, last week Supergroup announced the appointment of Burberry’s Distribution Director Gordon Knox to head up its logistics department , putting the retailer on firmer footing.
Dunkerton explained: “After a year of consolidation, financial year 2014 will see the Group start to move back towards historic levels of space growth as it develops its European presence.
“The investments in I.T. and logistics will continue to secure and strengthen the business and, with further developments in our ranges planned, I am encouraged by the Group’s prospects.”