SuperGroup falls as traders ignore sales to take profits
SuperGroup didn’t live up to its name in the City on Thursday as its shares plunged 7% despite strong full-year sales.
Traders cashed in on a recent strong run for the Superdry owner’s shares — overlooking a 27.2% rise in revenues to £750.6 million, with same-store sales up 12.7% and wholesale surging 42.9%. That brought a five-week share price rally of more than 11% to an abrupt halt: the stock plummeted 116p to 1535p.
Supergroup, half of whose sales are in euros, benefited from sterling’s fall, with roughly a third of its sales growth stemming from currency swings.
But Liberum warned the business, known for its jackets and clothing range designed by Luther star Idris Elba, “could be up against challenging comparators if these foreign exchange dynamics unwind”.
The broker, downgrading shares from Buy to Hold, also queried the retailer’s investment in store over online. “We ask why more is not done to get SuperGroup omni-channel fit.”
The boss Euan Sutherland described the performance as “consistent” and said the group was focused on long-term opportunities, including growing in the US and China. “We are an opportunity-rich business,” he said.
The Scotsman added that the retailer would be building out its popular sportswear and Idris Elba collections.
