£16.00

Gain to date: 119%

Fashion retailer SuperGroup’s (SGP) third-quarter trading statement (6 Feb) triggered earnings upgrades. The £1.3 billion cap grew retail sales 18.2% to £113.8 million and wholesale revenues 41.7% to £27.3 million in the 13 weeks to 26 January, with less clearance activity enabling gross margins to improve.

One of the key investment attractions of SuperGroup, up 119% since we highlighted the stock (see Plays, Shares 16 May ‘13), is global expansion. The retailer is making in-roads everywhere from Germany and France to Holland and Hong Kong with thriving international websites helping to sate global demand.

Buoyant spring/summer 2014 orders and a positive response to the autumn/winter range demonstrates how the Superdry brand is still resonating with consumers across multiple geographies. Investec has upgraded its pre-tax profit estimate for the year ending 26 April by £500,000 to £63 million for earnings per share of 57.3p. Though a prospective price to earnings ratio approaching 28 is demanding, confirmation of buoyant sales momentum in the fourth-quarter update (8 May) should help to sustain the rating.

SuperGroup’s valuation is more than supported by its international growth potential. (JC)