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Supergroup now expects pre-tax profit to be £43m for year

By BFN News | 08:20 AM | Friday 20 April, 2012

SuperGroup today provides an update on profit guidance for the financial year to 29 April 2012. The Group expects profit before tax for the full year to be approximately £43m. The board reveals there have been arithmetic errors in our forecast of the Wholesale business amounting to some £2.5m. Also, the Wholesale business is multi-dimensional, experiencing high growth levels and, given our rapid expansion and lack of history, it is difficult to predict accurately. There is a shortfall in the current year of some £2.0m due to the particular timing of pull-down of stock over the year end period by both franchise and wholesale customers. As this is largely a timing issue, the majority of these sales will fall into our FY13 result. Retail sales are in line with expectations, however, the mix of sales through Supergroup's various channels has impacted margins. Additionally, the board took the decision to increase its operating costs in order to ensure that it had the correct product at the right time in each of its retail channels, and also, to accelerate investment in its management team. The board anticipates the impact of these factors to be some £2.0m in total. At 8:20am: (LON:SGP) Sanctuary Group (The) share price was -177.95p at 391.55p Story provided by