Supergroup approaches 20% growth in 2014

By

Olivier Guyot

Published
Jul 10, 2014

Over its last fiscal year, Superdry surpassed 200 franchises and license stores around the world with 46 new openings. Additionally, Supergroup, its parent company, opened more than 650,000 square feet of directly operated floor space (+18%) with a total of 139 new stores.

This development strategy has allowed the British group to increase turnover by nearly 20% to 541 million euros (431 million pounds) for its 2013-14 fiscal year ending on April 26.

The group posted retail sales up nearly 18% to 358 million euros, although comparable sales were up 3.2%, including e-commerce. With an online presence in 15 countries, sales from e-commerce rose by nearly 27%, but its weight is not known, even while the group said it had a conversion rate of 2% for its 31.9 million visitors with an average order value having increased by 8% to 99 euros.

Its wholesale segment, which includes the business of franchise stores, recorded a 23% increase to 182 million euros.

As for its operating income, the group boasts a nearly 19% increase to 77 million euros, with an operating margin falling from 14.4% to 14.3%. But if one includes exceptional costs stemming from the buy-out of agencies in the UK and Spain and its partner in Germany as well as logistical investments, its operating profit shows a decline compared to the previous year falling from 65 to 58 million euros.

For 2014-15, the group said that it is facing a very competitive market for young fashion. It aims to make further progress in terms of e-commerce, particularly via its new mobile and tablet site. It also aims for some 50 franchise openings. The group aims to open more than 200 new franchises and license stores over the next five years.