SuperGroup (LSE: SGP) reported strong 15% growth in sales for its fiscal 2013, while underlying profits (ignoring non-cash and non-operating gains and losses) were up 25%.
Same store sales (sales at stores open for at least a year so meaningful comparisons can be made) were up 5.7% and the group opened 10 owned stores and 53 franchised stores during the year — with the franchises mainly in Asia and the Middle East.
Sales were helped by the success of the growing women’s lineup and the translation of the online store into 10 new local language sites. Online sales grew 28% and now make up over 11% of total sales.
The company’s rapid growth in recent years led to some growing pains in fiscal 2012 when inventory issues resulted in lost sales and some management blunders resulted in a shake-up at the top — and a dramatic drop in the share price.
SuperGroup has continued to invest in its management team — bringing in General Counsel and a Financial Controller, Directors of IT and HR, a Managing Director for the International and Wholesale operations, as well as Heads of Logistics, UK/Ireland Retail and Women’s Design.
SuperGroup also signed an agreement with a logistics partner to help handle the company’s warehouse and distribution operations which will become even more important as the online store is rolled out to more than 16 countries and all the orders will be fulfilled from here in the UK.
Trading on a P/E of 19, the shares may appear a bit pricey, but last year’s growth — as well as management’s investment in future growth — would seem to justify a premium. With the shares well down from their ridiculous highs of early 2011 and plenty of positive signs and seemingly lots of room to grow, the shares might be worth a look for those growth-inclined investors out there.
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> Nate does not own any shares discussed above.
