SuperGroup shares donned a red cape and flew high today after the retailer said its results had been supersized by the weakened pound.
Half-year revenues at the owner of the Superdry clothing brand grew by 31 per cent to £334m, raising the FTSE 250 company's share price by nine per cent.
10 November 2016 @ 4:15pmSupergroup (SGP)
Because of its considerable overseas footprint, SuperGroup said that sterling's weakness had boosted revenues considerably. In fact, the malaise of the pound accounted for a third of the reported growth in revenues.
The company sells products both through its retail outlets and on a wholesale basis. While its shops increased revenues by 25 per cent to £215m, wholesale revenues rocketed up 44 per cent to £119m.
Tom Gadsby, an analyst at Liberum said the half year results were well ahead of expectations.
Meanwhile, John Stevenson of Peel Hunt said the market had not forecasted revenue growth in the US and Europe at the levels reported. SuperGroup is "one of our sector top picks" according to Stevenson.
"This is another good performance particularly when set against last year's strong first half trading, said SuperGroup's chief exec Euan Sutherland.