Supergroup sees store sales struggle
By BFN News | 07:55 AM | Thursday 10 May, 2012
Supergroup reports that year on year, like-for-like sales in its retail divesion were flat for Q4.
Online performance continues to be strong but the challenging retail environment has seen a slow-down in sales from stand-alone stores and concessions.
Outlet stores have gained in popularity with the UK consumer and, combined with the Group's strategy of trading the UK store portfolio at full price, this channel provides the opportunity of managing stock levels in a profitable manner. Superdry now trades from nine outlets having opened four during the year in line with plans. Although a relatively small percentage of Group sales, "off-price" channels such as outlets and eBay have grown which, has had an adverse impact on the Group's gross margin. Wholesale division sales in the 13-week period have grown by 4.4%. The underlying growth rate was around 9% before adjusting for the year end translation of currency. The Group continues to generate good growth through expansion in overseas territories.
However, the slow-down in reported growth rate of the Wholesale business has been impacted by the annualisation of the SuperGroup Europe acquisition and the continued expansion of the UK Retail business which has affected Wholesale sales in the UK. In addition, growth was adversely impacted at the end of the quarter by delays to franchise stock shipments.
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