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Published
Nov 9, 2017
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​Superhero SuperGroup soars as it gets product and marketing just right

Published
Nov 9, 2017

SuperGroup is still living up to its name, turning in a set of superhero-style results on Thursday that proved this is one business that knows its customer really well.


Superdry



The firm, which will change its name to Superdry in Q1, said the 26 weeks to October 28 saw global brand revenue flying with a 25.2% surge to £756.3 million and strong growth in all its channels. Overall revenue associated with the brand leapt 25.2% to £756.3m with “continued strong growth across all channels,” it said. 

But of course that includes the mark-up money that doesn’t flow back to SuperGroup from its wholesale customers. Reported group revenues that do represent the money the company actually sees increased 20.4% to £402 million, with foreign exchange benefits adding £12 million to that.

Its total retail channel revenues were up 12.8%, boosted by a 31.6% e-tail surge and comp sales that rose a healthy 6.3%. And while many higher-end brands are retreating from wholesale, SuperGroup certainly isn’t as it’s a hugely successful channel for the company. Its wholesale revenue rose an impressive 34.1% to £159.3 million.

CEO Euan Sutherland was as upbeat as usual saying that the performance further shows “the unique advantages and attractiveness of Superdry as a Global Digital Brand.”

Importantly too, he said the brand’s growth has further diversified it, “both geographically and across channels, which serves to insulate the business from trading conditions in any single market.”

So what exactly is SuperGroup doing right that many of its retail peers aren’t at the moment? 

Well, it’s obviously getting the product very right. Its strength in jackets was boosted by new responsibly-sourced down jackets, while the youth-focused Varsity range was also “highly successful”. Expanded Superdry Sport product (along with more shop-in-shop openings) also made a major impact.

But reaching the consumer is about more than good product and marketing is key too. Its two fully integrated digital campaigns (called The Night is Young and This is My City) helped it reach new customers, reinforced “ownership of key seasonal categories”, and delivered strong returns on the sales front. And its new This is the Jacket campaign has also seen “positive initial consumer reaction providing momentum into the second half,” it said.

Of course, retail expansion is also helping it drive sales upwards and it added 37 franchise stores and 13 owned stores in 23 countries during the period, with the North American and Chinese markets being key to its growth plan.

And with e-tail growing so fast, its conversion of its European distribution centre to an omnichannel facilitator and a new Order Management System for e-commerce are helping it reduce delivery times to non-UK Europe, which can only boost sales further.

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