SuperGroup on trend for profits after strong first half

SuperGroup, owner of the Superdry fashion brand, said it was on track to meet expectations for annual profit after a strong first half.

Group revenue rose 20% to £402m in the six months to the end of October as wholesale revenue jumped by a third. Retail sales at established stores rose 6.3%.

The company, which is changing its name to match its trendy brand, said its gross margin would shrink by 170 basis points. It said the squeeze was caused by increased lower-margin wholesale sales through other companies' stores and maintaining prices for goods while raw materials costs rose.

The company has expanded Superdry into the US, where it recruited actor Idris Elba to help crack the market, and China. The brand, available in 52 countries, has moved into sportswear and launched a range aimed at college-age customers.

Euan Sutherland, SuperGroup's chief executive, said: "The performance in this half underlines our confidence in both the strength of the brand we are building and the quality of sustainable financial performance we can deliver."