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Supergroup - Forecasts upgraded after trading update

December 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SGP
  • Price:
  • 1203p
A good-looking Q2 update with good momentum in all areas. Overall H1 sales were up 18.8% and wholesale was up 24.8%. During Q2, five owned-stores were opened/acquired from franchisees in the UK with another two opening in Belgium and Paris, adding 33,000 sq ft space overall. Supergroup  has also paid £3.5m to take control of the agency operation in Germany which runs seven stores and it will now accelerate its roll-out of German stores. The new warehouse operation in Burton-upon-Trent began dispatches at the beginning of October and cuts depreciation costs by c.20%.Overseas, international franchisees opened 19 stores during Q2, up on the 12 opened in Q1. Investec has upgraded this year's forecast to 58.3p with ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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