SuperGroup has pulled off another strong half, increasing like-for-like retail sales 17.2% while preparing the ground for further global expansion. Here’s what the analysts had to say.

Here we round-up analysts’ reaction:

”While the group has benefited from weaker comparatives, today’s result is driven by improvements in operating structure and a renewed focus on ranges, which are benefiting from significant levels of newness and innovation. Upgrades for peak look likely, while the medium-term potential for the US remains absent from market forecasts. Total retail sales increased 30.9%, reflecting the recent acquisition of US distribution rights and strong European space growth. Operationally, range improvements are driving increased participation in womenswear and denim, with new athletic ranges landing successfully and intended to be rolled into menswear in future seasons.” – John Stevenson and Jonathan Pritchard, Peel Hunt

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“We raise our full-year profit before tax by 3.6%, which assumes a moderation in second-half growth, given tougher comparables, to a more sustainable level longer term. We believe Supergroup’s global growth opportunities continue to be undervalued and see material opportunity to improve UK profitability. Progress has been made in resetting the US – price points have been repositioned to UK levels; stock cleared and appropriate ranges put in – and setting up a Chinese joint venture, with the first stores due in 2016. Wholesale sales up 8% are also a good result as we thought growth would be held back by wholesalers being long of stock post a weak autumn/winter 2014. Negative currency offset US sales addition. First-half gross margin due to be ahead of full-year guidance, reflecting retail/wholesale mix shift.” – Kate Calvert, Investec

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”Today’s second-quarter update from SuperGroup makes much better reading, with retail like-for-like sales up a heady 15.5%, helped by a weak comparative of -4%  and the shift in the autumn weather versus last year. The wholesale division has also continued to perform well, notwithstanding the impact of sterling strengthening against the euro, with first-half sales up 8%.” – Nick Bubb, independent analyst

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