Superdry owner sees profits rise 54%

Superdry owner sees profits rise 54%

Superdry owner SuperGroup has seen its half year profits rise by 54% resulting in shares bouncing back by 10%.

SuperGroup - famous for its hoodie tops and T-shirts - saw shares bounce back by 10%, clawing back some of the 13.5% plunge seen on Tuesday after a broker said unseasonably warm weather and increased competition had seen the retailer launch unplanned promotions to shift stock.

The clothing retailer, which has recently teamed up with Luther and The Wire actor Idris Elba, said underlying profits rose to £19.3m in the six months to October 24, up from £12.5m a year earlier.

On a bottom line basis, profits fell by a third to £11.5m due in part to start-up losses of its new North American business.

SuperGroup also cut its earnings outlook for the US division, which it expects to remain loss-making until 2017.

But chief executive Euan Sutherland - the former boss at the Co-op, who took the top job in October last year - hailed a robust first half.

He said: "With a successful first half completed, the business is well placed for the significant peak trading period."

He added: "Whilst comparatives in the second half are more challenging, the development of Superdry into a global lifestyle brand is proceeding with pace."

The surge in half-year profits came as SuperGroup delivered a 17% rise in like-for-like retail sales, against a 4.1% fall a year earlier when sales were hit by a mild autumn.

But there are signs that a mild winter so far this year is forcing retailers into heavy discounting, with official inflation figures on Tuesday showing a record fall in clothing and footwear prices last month.

The Office for National Statistics said the price of clothing and footwear fell by 0.1% between October and November - the first time they have dropped month on month in November since ONS records started in 1996.