SuperGroup on track after warehouse fiasco

SuperGroup posted a 42% increase in group sales for the three months to 30 October as its recovery plan, following problems with new warehouse systems, pushes ahead.

Shares in Supergroup, owner of the Superdry brand, plummeted last month after it revealed a botched upgrade to a warehouse system led to shortages in stock levels.

"Progress has been made in restoring the replenishment capability and further improvements are expected during November," the fashion retailer said.

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Supergroup previously announced that the impact of the disruption on annual profits will be around £6m-£9m.

Retail sales in the last three months, which were affected by the temporary disruption to warehouse operations, rose 23% to £40m. Wholesale sales, which were unaffected by the distribution issues, rose 67% to £42m.

Meanwhile its UK rollout remains on track with the number of standalone stores up by 12 in the first half bringing the total to 72. A further four stores are due to open before Christmas.

The group's flagship store in Regent Street, London, also continues to make progress and is on track to be fully open by the end of this financial year, it said.

Chief executive Julian Dunkerton said, "While this has been a demanding period for SuperGroup logistically, we are well on the road to rectifying the situation and have learned valuable lessons in the process."

"The broader macro and consumer environment remains uncertain. However, we look forward to the peak season with a growing portfolio of stores both in the UK and internationally and confidence in the future growth of the business."

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