Fashion Label Superdry Sees Soggy Profits
The boss of fashion label Superdry has confirmed a "disappointing year" for the group, with pre tax profits falling almost 15%.
SuperGroup CEO Julian Dunkerton said: "While sales have continued to grow substantially, this has been a disappointing year for the group.
"We have faced challenges brought about by the rapid growth of our business which have been compounded by the volatile and adverse market conditions being experienced by all fashion retailers.
"Profits have, therefore, fallen short of expectations."
Although the firm saw revenue growth of 31.9% to £313.8m, underlying profit before tax dropped from £50.2m in 2011 to £42.8m in its 2012 financial year.
SuperGroup has been beset by distribution problems amid rapid expansion both in the UK and abroad.
The company went public in March 2010 and in the last three years its UK retail base has expanded from 42 to 79 stores, while its international franchise stores have increased from 29 to 101.
Chairman Peter Bamford added: "Clearly, keeping pace with this level of growth would always have been a challenge, but we should have done better.
"The last year has clearly been a difficult one for SuperGroup. We have delivered a strong performance in group revenues, but profits have fallen considerably short of expectations.
"Whilst the tough and volatile economic environment has not helped, our problems have been largely self-inflicted."
It has brought in new chief operating and financial officers, experienced senior managers and enhanced its warehouse capabilities.
The firm also intends to create more feminine apparel for women and release men's suits and jackets in collaboration with tailor Timothy Everest.
Online traffic increased in the year by 39.3% to 20.2 million visitors, while internet revenue for the group was boosted by a fifth, to 10% of total group sales.
Early trading in SuperGroup on Thursday saw a jump of around 10% as investors warmed to the company's growth strategy, and by market close the price had edged up 15.1% to 385p.
:: The parent company of Primark has reported a 16% increase in sales during the year for the budget clothing retailer.