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SuperGroup retesting 2014 highs

Shares in SuperGroup have reflected the benefits of a strategy rethink for the online clothing retailer.

SuperDry clothing
Source: Bloomberg

On Thursday 9 July SuperGroup is due to announce its full-year figures for 2015. The adjusted earnings per share are expected to increase fractionally from 58p to 58.5p while the company’s sales figures are a little more positive increasing from £430.9 million up to £483.5 million. Streamlining of costs should see the pre-tax profit jump by almost 40% from £45.2 million in 2014 to £62.889 million in 2015.

Institutional support for the clothing retailer is strong with eight buy recommendations, two holds and only one sell. The average price target is £12.43 offering a 3% upside from the current price of £12.05.

Nick Wharton has now been confirmed as the permanent chief financial officer. Last year in the third-quarter, under the guidance of new CEO Euan Sutherland, the company held a clearance sale and took the opportunity to freshen up its retail offerings. Subsequently the company has managed to distance itself from last year’s accounting irregularities and profit warnings. Even with the increase in overseas outlets, sales in UK stores remain its primary revenue source. This year has seen a further 24 shops opened, taking the total to 178 of which 97 are in the UK.

Since the beginning of the year the share price has risen 34.48% from £8.96 up to the current price of £12.05, and has spent most of the last three months in overbought territory on the relative strength index. 

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