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Supergroup - Shares bounce higher

October 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:
  • 1022p
Supergroup has issued a strong Q1 update with retail sales up by 51% to £34m and wholesale sales up by 98% to £21m. Having provided the first 10 weeks trading at the time of full year results (see August Sharewatch), this includes just three additional weeks of trading (48% retail and 75% wholesale) so clearly performance has accelerated. Supergroup said it has opened four UK stores and 10 international ones. The previous guidance of 20 UK stores and 50 international ones was reiterated and supports Singer's forecast eps of 64.6p for the year to 30 April with 89.7p next year, to drop the prospective PE to 11.4. Strong hold. ...

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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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