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| Version 1 | Version 2 |
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| SuperGroup shuns heavy discounting before Christmas | SuperGroup shuns heavy discounting before Christmas |
| (about 7 hours later) | |
| SuperGroup has said it has opted out of heavy discounting on the high street and is set for a successful Christmas, dismissing speculation that it was suffering tough trading. | SuperGroup has said it has opted out of heavy discounting on the high street and is set for a successful Christmas, dismissing speculation that it was suffering tough trading. |
| The owner of the Superdry brand, worn by David Beckham and represented by the actor Idris Elba, reported first-half underlying pre-tax profit up 54% to £19.3m as sales at stores open a year or more rose 17% and online sales rose 19%. | The owner of the Superdry brand, worn by David Beckham and represented by the actor Idris Elba, reported first-half underlying pre-tax profit up 54% to £19.3m as sales at stores open a year or more rose 17% and online sales rose 19%. |
| Statutory pre-tax profit, including the reduced value of stock acquired when SuperGroup bought out the licence for its ailing US business, fell by a third to £11.5m. | Statutory pre-tax profit, including the reduced value of stock acquired when SuperGroup bought out the licence for its ailing US business, fell by a third to £11.5m. |
| SuperGroup’s shares fell heavily on Tuesday after an analyst’s note suggested the company could be struggling to compete with deep discounts at other retailers. The analyst said SuperGroup had cut prices and could be left with more stock than expected because of unusually warm weather. | SuperGroup’s shares fell heavily on Tuesday after an analyst’s note suggested the company could be struggling to compete with deep discounts at other retailers. The analyst said SuperGroup had cut prices and could be left with more stock than expected because of unusually warm weather. |
| Related: SuperGroup slumps 10% on stock fears and discounting for Christmas | Related: SuperGroup slumps 10% on stock fears and discounting for Christmas |
| Euan Sutherland, its chief executive, said: “We don’t really recognise some of the facts were in the note. Our promotional participation is very low. It’s less than 10% of sales and it’s slightly lower year on year. Our stock levels are slightly lower year on year and our quality of stock has gone up.” | Euan Sutherland, its chief executive, said: “We don’t really recognise some of the facts were in the note. Our promotional participation is very low. It’s less than 10% of sales and it’s slightly lower year on year. Our stock levels are slightly lower year on year and our quality of stock has gone up.” |
| SuperGroup’s shares rose by 17% to £17 on Wednesday. The shares have doubled in value in the past year. | |
| Christmas shoppers are predicted to benefit from the biggest discounts by retailers since 2008, according to a survey published on Tuesday. With little more than a week left until Christmas day, discounts average 42% and will rise to 45% by the weekend, Deloitte calculated. | Christmas shoppers are predicted to benefit from the biggest discounts by retailers since 2008, according to a survey published on Tuesday. With little more than a week left until Christmas day, discounts average 42% and will rise to 45% by the weekend, Deloitte calculated. |
| Sutherland said SuperGroup offered 20% discount on certain items for short periods of time but had shunned mass discounting to get tills ringing. Its equivalent figure to those in the Deloitte survey was around 5%, he said. | Sutherland said SuperGroup offered 20% discount on certain items for short periods of time but had shunned mass discounting to get tills ringing. Its equivalent figure to those in the Deloitte survey was around 5%, he said. |
| “We don’t tend to respond to what is on the high street too much. Across the high street you will see at Mango, Top Shop and Wallis 20, 30, 40 or 50% off everything. What we do is such a narrow amount of product on a rotating basis before Christmas. We are well set for Christmas.” | “We don’t tend to respond to what is on the high street too much. Across the high street you will see at Mango, Top Shop and Wallis 20, 30, 40 or 50% off everything. What we do is such a narrow amount of product on a rotating basis before Christmas. We are well set for Christmas.” |
| Sutherland, who joined in November 2014 after walking out as boss of the Co-operative Group, said he was comfortable with analysts’ average forecast for annual underlying profit of £72m. He has had a volatile first year, announcing a profit warning before last Christmas before a burst of cold weather revived sales. | Sutherland, who joined in November 2014 after walking out as boss of the Co-operative Group, said he was comfortable with analysts’ average forecast for annual underlying profit of £72m. He has had a volatile first year, announcing a profit warning before last Christmas before a burst of cold weather revived sales. |
| Sutherland said he was not concerned about this year’s warm weather in the run-up to Christmas and that sales of new women’s and gym ranges were doing well. | Sutherland said he was not concerned about this year’s warm weather in the run-up to Christmas and that sales of new women’s and gym ranges were doing well. |
| In the first half, increased margins were offset partly by slower progress than expected in overhauling the US business, which SuperGroup bought from the licensee last year. Sutherland said SuperGroup missed out on some pre-Christmas US sales as it revamped stores and installed new management. | In the first half, increased margins were offset partly by slower progress than expected in overhauling the US business, which SuperGroup bought from the licensee last year. Sutherland said SuperGroup missed out on some pre-Christmas US sales as it revamped stores and installed new management. |
| The company has hired Elba, known for appearing in The Wire and Luther, to design a premium range and represent the brand in the US. | The company has hired Elba, known for appearing in The Wire and Luther, to design a premium range and represent the brand in the US. |