Supergroup Share Discussion Threads

[opodio] 02/7/2017 15:59

If whoever did pinch the bag, as some are reporting, they will have been left with one impression of the business – SuperGroup is doing very well thank you.

Profit before income tax for the Gloucestershire business is up 53.1 per cent to £84.8m (2016: £55.4m) and its “year-end net cash” amounts to £65.4m (2016: £100.7m).

Revenue was up 27.4 per cent to £752m with retail like-for-like sales growth up 12.7 per cent and underlying profit before tax is up 18.4 per cent to £87m.

[clocktower] 30/6/2017 11:24

Cash Drop and underlying profit % drop maybe dawning on some to get out while the going is good.

[essential] 30/6/2017 11:21

Price drop seems very harsh - results are excellent at face value

[ianguerin] 22/6/2017 05:42

nw99 - wrong thread?

[opodio] 19/6/2017 12:10

A rerating perhaps triggered by their e-commerce sales which are mushrooming going by their statement

[opodio] 04/6/2017 14:52

A rerating perhaps triggered by their e-commerce sales which are mushrooming going by their statement

[chickenrun1] 28/5/2017 09:33

An interesting update from Small Co Sharewatch nw99.

As a long term holder I hope they are right.

[nw99] 28/5/2017 08:44

SCSW update this is worth £3-4 more as rolls out into China

[aishah] 18/5/2017 11:15

Retail sales in April beat forecasts with a 2.3% rise

Warmer weather helped retail sales to rise by more than expected last month, according to official data.

Sales volumes jumped 2.3% in April from the month before, the Office for National Statistics (ONS) said, and were 4% higher than a year earlier.

April's rebound contrasted with March, when sales saw the biggest fall in seven years.

"Anecdotal evidence from retailers suggests that good weather contributed to growth," the ONS said.

The stronger-than-expected rise in sales pushed the value of the pound above $1.30, its highest level since September last year.

BBC News

[larva] 12/5/2017 11:38

over 1600p today?

[parazaradox] 12/5/2017 10:41

Looking nice

[aishah] 12/5/2017 10:19

SuperGroup’s wholesale change translates into sales

"While SuperGroup’s mainly UK retail operation increased like-for-like sales by 12.7 per cent, its wholesale division — which sells clothes via international franchised outlets, department stores and independent shops — achieved 42.9 per cent growth, by removing inefficiencies and carrying the same range as its retail stores.
"

"Tellingly, the wholesale order uplift has not been country specific, giving SuperGroup the confidence to open 62 new international franchises — seven in new territories, such as Russia and Romania.

Having already broken even in the US, after paying £22m to buy itself out of an old licensing deal, analysts now forecast further growth potential. All of which makes SuperGroup’s 20 per cent discount to rivals’ valuations as hard to fathom as its T-shirts. Investors will be hoping for a rerating..."

[ali47fish] 11/5/2017 16:11

paraza- where does the quote text come from can you give a link- thanks!

[mr_spock] 11/5/2017 11:44

Profit last year £73.5m.
Profit this year £86.5m (+17.7%)
Okay, the margin suffers a little as the wholesale is lower margin, but I'm prepared to accept that for a 42.9% increase in wholesale revenue.

[gairich] 11/5/2017 10:41

Market makers have had their fun it can move in the rite direction now

[parazaradox] 11/5/2017 10:23

SuperGroup (BUY) – FY trading update in line



SGP LN (1,718p, TP 1,920p), Market Cap: £1,394m



Our view: Today’s trading update is broadly in line with expectations with full year sales growth of 27%. Both Retail and Wholesale divisions saw good growth in FY’17 as SuperGroup continues to gain traction with an increasingly international audience. Management comment that they expect to report FY’17 PBT in line with expectations and so we do not expect any major changes to forecasts today. Looking forward, the refurbishment programme should ‘kick-start217; further growth in the UK while there continues to be significant opportunities to develop the brand both in Europe and the US. We reiterate our BUY recommendation and 1,920p TP (23x cal’17 PER).



· FY’17 trading update – SuperGroup has reported sales data covering the year to end April 2017. Total Group sales have risen by 27.2% to £750.6m (CFE £748m, Cons £740m), with around one third of the growth due to favourable FX translation. Retail sales have increased by 20.6% to £501.6m (CFE £512m), including LFL growth of 12.7% (CFE +11%) and 7.9% from space and FX. Retail trading space increased by 17% to 1,054k sq ft over the year. The Retail performance over the final quarter (16 weeks and the lowest volume period) was solid, with growth of 13.6%. Q4 LFLs rose by 9.4% (CFE 5.0%), following growth of 14.9% in Q3, 13.7% in Q2 and 11.9% in Q1. The Q4’16 comp was tough at +15.4% and leaves two year LFL growth in Q4 at 24.8% (Q3 +16.1%, Q2 +29.2% and Q1 +31.2%). FY’17 Wholesale sales increased by 42.9% to £248.9m (CFE £236m) helped by strong sales through the customer base and the opening of further franchise stores. The Group gross margin is expected to be down 120-140bps in FY’17 due to the impact of FX and the mix shift towards lower margin wholesale growth. The development of the new regional distribution facilities remain on track with dual running costs in line with guidance at c.£2m. The development markets of the USA and China also continue to trade in line with plan, with breakeven achieved in the USA following strong online growth and an improved store LFL performance.



· Impact on forecasts – Prior to today’s update our FY17 PBT forecast stood at £86.5m (EPS 86.3p) with consensus PBT at £86.2m. Management comment that they expect to report PBT in line with market expectations in the range of £86m to £87m and so we do not envisage any major changes to forecasts today.



· Exciting prospects ahead – At the September 2016 Capital Markets day, it was clear the company had developed a ‘leading edge’ format not just from a domestic but also a global perspective. The new store was developed ‘in house’, section by section and category by category rather than being developed by a third party. At the same time, the company provided an update on its multi-channel strategy (on-line already accounts for 23% of group sales, one of the highest amongst its peer group). Over the next year, the company should be able to fulfil European orders from its Belgian distribution depot, significantly improve its digital marketing effort, and have developed new order management systems which will enable consumers to pick up their order from store and launch ‘reserve and collect’. Execution of the strategy remains key but we have confidence in the experienced senior management team.



· Valuation & Recommendation – SuperGroup trades on a cal'17 PER of 18.3x falling to 16.3x cal'18. The company has a strong balance sheet, which is forecast to have net cash of over £85m at April 2017 and a progressive dividend policy. We reiterate our BUY

[shanksaj] 11/5/2017 10:12

Last year profit £73.5m before income tax

This year £86 to £87m before tax.

Assuming these are comparable then using £86m the profit growth is 17%.

[rhatton] 11/5/2017 09:12

Broker cuts to hold in the above

[rhatton] 11/5/2017 08:20

Gross margin effecting these? Or simply sell on the news perhaps

[1bonanza] 11/5/2017 08:12

I like your positivity but this looks like £15 again.

[tjbird] 11/5/2017 08:06

This is just people who stagged for results

Im ready to gobble a few more

[1bonanza] 11/5/2017 08:02

Markets not liking it !