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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Supergroup - Strong trading suggests a "beat" is likely

January 2017

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SGP
  • Price:
  • 1604p
The shares soared more than £2 after Supergroup unveiled a strong update covering the 26 weeks to 29th October. Group revenues rose 31% to £334m  of which retail rose 25% to £215m, with like-for-like sales up almost 13%, helped by strong e-commerce  growth and sterling weakness boosting the international parts. During the period it opened 12 own retail stores, all outside the UK adding 67,000 sq. ft. equivalent to 19% of new space.Wholesale revenues increased almost 44% to £118.8m benefiting from investments made in the prior year.  Gross margin is expected to decline by 1.3% primarily reflecting a higher mix of lower margin wholesale business and was improved thanks to better buying and direc ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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