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Tag: SuperGroup

  • SuperGroup thrives after downsizing logos

    SuperGroup thrives after downsizing logos

    SuperGroup was a clear winner last Christmas as it benefitted from the weak pound and the opening of net nine new stores in the 10-week Christmas period helping to boost revenue to £162.1 million.

    SuperGroup’s conventional approach to discounting, with a series of online category specific promotions before Christmas and a clearance sale after, drove full price sales throughout most of the trading period.

    SuperGroup’s deliberate move away from the heavy logoed product of the past and investment in its womenswear ranges and premium menswear collection means Superdry has become a more fashion focused brand that has greater mass appeal – albeit its distinctive design flair still helps differentiate its offer from rivals.

    Communication of its updated ranges to new consumers is now imperative to its success. For females its investment in making stores more gender neutral will help shift views that it is a male brand, but with almost 50 per cent of women shopping menswear, it should consider assigning prime floorspace to womenswear to make it more appealing to browse collections when instore.

    In menswear it continues to outperform the sector boosted by its sportswear range and the prolonged athleisure trend. Despite its strong performance it still needs to shift perceptions that it is solely a casualwear retailer. The Idris Elba premium collection presents clothing that aligns it with new competitors such as Ted Baker, Whistles and Reiss; however winning the attention of these shoppers will remain difficult as merchandising, even in newer formats, still primarily focuses on casualwear.

    Dedicated window displays of the premium collection is one way Superdry can tempt new shoppers who have more tailored tastes in store and away from established smarter casualwear menswear retailers.

  • First Superdry China stores set to open

    First Superdry China stores set to open

    The first Superdry China stores are set to open in what a commentator describes as a core future market for parent SuperGroup.

    Nivindya Sharma, a senior analyst at Verdict Retail, says the brand’s international expansion strategy will now focus on “two key, but notoriously difficult, markets – the US and China” in the current financial year.

    “Superdry will open its first trial stores in China in 2016 and five in the US as it experiments with different store formats. Its relatively cautious approach to store rollout, and focus on eCommerce as a route to developing brand awareness and understanding local customer behaviour should serve it well,” said Sharma.

    News of its summer debut in China came amid an impressive full-year result: SuperGroup sales rose 21.3 per cent to £590.1 million, aided by its collaboration with British Hollywood star Idris Elba. Underlying pre-tax profit rose 16.3 per cent to £73.5 million.

    “Against a bleak background of stalling sales from major high street players such as Next and Primark, SuperGroup posted a stellar set of full-year results with strong growth across both its retail and wholesale divisions,” said Sharma.

    “No doubt, the net 24 stores the retailer opened during the year were major contributors to its FY results, but robust like-for-like growth indicates consumer demand remains strong for Superdry’s distinctive product.”

    Womenswear was the strongest growing category for the year, reflecting the push Superdry has made to broaden womenswear ranges and merchandise them more prominently in-store and online.

    “The brand is focused on developing its presence in womenswear, especially as it experiments with new concept stores in the UK that give more space to women’s ranges, and focus on enhancing the shopping experience using knowledge from its customer insight program,” said Sharma.

    “However, to truly make a mark in the UK’s highly competitive womenswear market, Superdry will have to consider how best it can soften and translate its male-centric brand image to appeal to female consumers.”

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  • SuperGroup’s stellar performance

    SuperGroup’s stellar performance

    Against a bleak background of stalling sales from major high street players such as Next and Primark, SuperGroup has posted a stellar set of full-year results.

    Strong growth was achieved across both its retail and wholesale divisions – 24.5 per cent and 13.7 per cent respectively – contributing to total group revenue of £589.5 million.

    There was no mention of poor weather affecting fourth quarter retail sales, which were up by 29.9 per cent on a top line basis and by 15.4 per cent on a like-for-like basis, highlighting how Superdry’s transeasonal ranges are more aligned with the manner in which consumers shop than many other retailers. Consumers’ shopping habits are changing, and seasonal product drops are increasingly irrelevant when shoppers prefer to buy across seasons – a lesson several clothing retailers would do well to learn.

    No doubt, the net 24 stores the retailer opened during the year were major contributors to its full-year results, but robust like-for-like growth indicates consumer demand remains strong for Superdry’s distinctive product. 2015 was a year of product development and range extensions for the retailer, with new sports and activewear ranges added, a highly-publicised collaboration with actor Idris Elba, and greater focus on womenswear – all initiatives which have driven spend from existing shoppers while recruiting new ones.

    On a slightly less upbeat note, founder James Holder has resigned as brand & design director of the business. However, he will be creating and working exclusively in SuperDesign Lab – a design consultancy where he intends to focus on innovation to support Superdry. It’s a well-thought out move especially as Verdict Retail data shows that consumers are increasingly demanding value for money.

    Incorporating fabric and technology innovation into key product ranges such as sports and activewear, will help Superdry provide more value to existing and prospective customers – thereby positioning it well for long-term growth.

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  • Superdry delivers stunning turnaround

    Superdry delivers stunning turnaround

    SuperGroup, owner of the global lifestyle brand Superdry, has achieved an impressive 22.3 per cent increase in sales for the first half year, to £254.7 million.

    SuperGroup’s retail arm represented its strongest division, generating 30.8 per cent growth to £172.1 million, reflecting the continued expansion of wholly owned stores in the EU. Additionally, retail same store sales saw a major turnaround, increasing rapidly by 17.2 per cent compared to a decline of 4.1 per cent during the same period last year.

    This was driven particularly by a strong eCommerce performance. Online retail sales grew by 19.2 per cent as its digital channel continues to be its fastest growing route to market.

    “That noted, SuperGroup’s core focus remains on significant physical expansion within its key markets – Europe, North America and China,” observes  Anusha Couttigane, senior consultant with retail analyst Conlumino

    As part of its full year strategy, the group has set out to expand own store space by some 130,000 sqft  (12,000 sqm) within Europe. So far, nearly half this target has been achieved, the company having opened 14 net new stores comprising 63,000 sqft (5850 sqm) of new trading space during the first half year.

    Elsewhere, its wholesale arm saw 23 international franchise and licensed stores open during this period, contributing to a 7.8 per cent growth in wholesale revenue. However, the seasonality of its products has caused the group to announce an expected £3 million to £3.5 million operating loss in its North American operation for the full year as it realigns its product offer for its customer proposition on the continent.

    “With a successful first half completed, SuperGroup has positioned itself well for the all-important Christmas trading period,” comments Couttigane.

    “In the run-up, product innovation has been leveraged to encourage new customers, including Superdry’s premium collaboration with Idris Elba and its Superdry Sport and Superdry Snow collections for women, making the brand a strong contender for Christmas wish lists.

    “However, while its first six months have benefited from soft comparatives, the second half is set to be more demanding,” she concluded.

    SuperGroup’s full year pre-tax profit projection remains stable at £72.1 million.

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  • Superdry China launch confirmed

    Superdry China launch confirmed

    SuperGroup, the parent of the hip casual fashion brand Superdry, has confirmed plans to enter China, as reported by Inside Retail Asia earlier this week.

    The Superdry China foray will be a 50:50 joint venture with local company Trendy International Group. SuperGroup will invest up to £18 million to kickstart the new market, but says it expects the JV to be self-funding within two years of launch.

    The group promises a “measured” roll-out program in China with Trendy managing the day-to-day business operations. SuperGroup will provide strategic brand support, design services and marketing.

    SuperGroup CEO Euan Sutherland said of the move: “The joint venture in China with Trendy International Group, together with an extensive pipeline of new stores in our targeted European markets and continued momentum in eCommerce, provides confidence of continued long-term growth.”

    The company announced a two per cent increase in net profit to £63.2 million in the year to April 25 April on revenue up 12.9 per cent to £486.6 million. Its retail revenue rose 17 per cent with same store sales growing 4.8 per cent.