Plunging pound proves super for retail group

FASHION RETAILER SuperGroup has reported a bumper rise in revenues after enjoying a boost from the plunging pound.

The company behind fashion retailer Superdry said that full-year sales rose 27.2 per cent to £750.6m, with currency benefits accounting for a third of its growth.

The pound has fallen about 12 per cent against the US dollar since the vote to leave the European Union.

SuperGroup has operations in Europe, the US and China, as well as the UK.

Like-for-like sales were up 12.7 per cent in the period and the board anticipates that full-year profit will be in the range of £86m and £87m, in line with market expectations.

Chief executive Euan Sutherland said: “2017 has seen another good year of sales and profit growth.

“This has been achieved by improving our product ranges and introducing new categories to excite, inspire and maintain the brand’s relevance while, in parallel, investing in our development markets and improving our infrastructure.”

SuperGroup, which has 555 stores globally, added that a strong online performance and improving store sales has seen it break even in the US.

Adam Tomlinson, analyst at Liberum, said: “Strong top line growth across retail and wholesale is offset by gross margins that are lower than expected and revenue growth has benefited materially from forex.”