Shares in Superdry owner fall over 5 pc despite strong FY results

Superdry owner SuperGroup (LON:SGP) saw shares fall nearly 5 percent in morning trading on Thursday, despite full year results benefitting strongly from positive currency movements.

Group revenues for the full year increased by 27.2 percent to £750.6 million, with the sterling’s weakness during the period accounting for approximately one-third of the reported growth in sales.

Retail revenue increased by 20.6 percent to £501.6 million as consumers continued to exhibit strong demand for its clothing brand Superdry. The group had 555 branded store locations at the end of the year, up from 475 in 2016.

Superdry’s wholesale revenue soared by 42.9 percent to £248.9 million, with ecommerce sales up by 35 percent.

In line with guidance, gross margin performance across the Group’s sales channels have been broadly flat year on year across the second half. Euan Sutherland, Chief Executive Officer, said:

“We remain focused on the consistent execution of the strategy outlined in early 2015. This global multi-channel growth strategy balances opening stores, developing new wholesale partners and driving our strong e-commerce proposition to expand the reach of the brand and further diversify our business model.

“FY17 has seen another good year of sales and profit growth. This has been achieved by improving our product ranges and introducing new categories to excite, inspire and maintain the brand’s relevance while, in parallel, investing in our development markets and improving our infrastructure.

“With a clear strategy and a number of long term opportunities to establish Superdry as a global lifestyle brand we remain confident in the continued delivery of sustainable revenue and profit growth.”

However, despite the strong results, shares in SuperGroup are currently trading down 5.15 percent to 1,566.00 (1101GMT).