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Supergroup

January 2011

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:
  • 1265p
A sell off for the shares in the highly rated branded retailer followed the interim results although there was nothing untoward in the results themselves. It may have been just profit taking after the meteoric rise or perhaps the CEO’s throwaway remark about higher cotton prices impacting next year's margins that rattled some (cotton prices have been rising all year and it hasn't halted Supergroup's ascent thus far but analysts expect it to reduce gross margins by 2% - Editor). Overall sales grew a blistering 65% to £90.3m. Adjusted pretax profit was up 68% to £13.5m and eps was 11.3p, both of which exclude the effect of new accounting policies (on charging for freight and duty costs).On the retail side, sales went up 7 ...

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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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