Weak pound helps lift revenues at SuperGroup
SuperGroup has reported a bumper rise in revenues after enjoying a boost from the plunging pound.
The company behind fashion retailer Superdry said that full-year sales rose 27.2% to £750.6 million, with currency benefits accounting for a third of its growth.
SuperGroup has operations in Europe, the US and China, as well as the UK.
Like-for-like sales were up 12.7% in the period and the board anticipates that full-year profit will be in the range of £86 million and £87 million, in line with market expectations.
Chief executive Euan Sutherland said: "2017 has seen another good year of sales and profit growth.
"This has been achieved by improving our product ranges and introducing new categories to excite, inspire and maintain the brand's relevance while, in parallel, investing in our development markets and improving our infrastructure."
SuperGroup, which has 555 stores globally, added that a strong online performance and improving store sales has seen it break even in the US.
However, shares in the fashion label fell as much as 7% after the firm warned that it expects full-year gross margins to fall to between 140 basis points to 120 basis points.
Shares were trading 4.7% down at 1,573p in afternoon trading having pared earlier losses.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: "It's not often that annual revenue growth of 27.2% results in a 4.5% drop in the share price, but that is what's happened at FTSE 250 retailer SuperGroup.
"A closer look reveals that a third of the revenue growth came from the fall in the pound since the EU referendum. Add in the fact that Q4 growth was the slowest of the year and the news that gross margins are weaker, and it's easier to see the rationale for the fall."