Supergroup launches sports stores as profits rise – Telegraph.co.uk
Supergroup, the company behind the Superdry fashion brand, has announced that it is launching standalone sports shops to tap into the fast growing ‘athleisure’ market as profits and sales jumped.
The business was forced to release its results highlights last week after the theft of an employee’s handbag contained a draft of the announcement.
The retailer, which has 863 shops and concessions around the world, said that its international strategy had paid off with overseas sales helping pre-tax profits rise 18.4pc to £87m in the year to April 29. Sales rose by 27.4pc to £752m, with like-for-like sales up by 12.7pc.
Supergroup now makes less than half of its sales from the UK after a rampant expansion programme in Europe, Asia and North America, where the business now is ‘break even’.
Euan Sutherland, chief executive, said that international sales had helped Supergroup to offset some of the currency impact that his fashion rivals had suffered as a result of the weaker pound.
Mr Sutherland added that he had seen “fairly stable markets” in response to concerns about a slowdown in consumer spending.
Most fashion companies source their products in Asia and pay in dollars, which has left them facing sharp increase in import costs as sterling has slumped since the EU Referendum. Mr Sutherland said that after the UK, Germany was now Supergroup’s biggest market followed by France and the Benelux.