Financial Trading Blog
Stock of the day 12/07/2016 – SuperGroup PLC
Even before the Brexit mayhem SuperGroup had been having a wet and wild year. From an opening price of £16.50 the stock had plunged to £12 in the middle of February and, after a couple of months pushing £15, at the start of May. The aftermath of the referendum then saw SuperGroup graze a 12 month low of £11.41, before rising to a current trading price of £13.66 (IT-Finance.com, 12/07/2016).
(Source: IT-Finance.com 12/07/2016)
Yet for all its stock market ups and downs SuperGroup’s 2016 updates (all 2 of them) have been fairly consistent. With Idris Elba as the face of its campaigns the company saw a 14.6% rise in sales across the 11 weeks to January 9th, while for the 37 weeks to the same date SuperGroup managed a 22.9% jump in total retail revenue to £315.6 million.
SuperGroup went from strength to strength with its May update; like-for-like full year sales surged higher by 11.3%, more than double the 4.8% managed across fiscal 2015, with total revenues rising by 21% to £589.5 million. The cherry on top came in the shape of 2 new distribution centres to deal with increased demand in both Europe and North America.
In terms of this Thursday’s update SuperGroup has stated it expects pre-tax profit to come in between £72.5 million and £74 million, a clear improvement on the £63.2 million seen the year before. Of course for all the promise of profit growth likely to impress investors there is still the issue of the Brexit for SuperGroup to deal with, and like all FTSE 250 companies at the moment expect the fashion firm to mention the potential impact of the exit going forwards.
SuperGroup PLC has a consensus rating of ‘Buy’ with an average target price of £16.49.
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