SUPERGROUP yesterday moved to reassure investors that its growth plans were on target, with a market update reporting strong sales in the past three weeks, although its shares still slumped 4.1 per cent.
The company’s stock has dropped in recent weeks on worries about its growth prospects.
It had admitted that it was short of some summer stock after it was caught unawares by the early hot weather.
But yesterday it said it had exchanged contracts for a new flagship store on Regent Street and was seeing strong sales growth.
It plans to open six to ten new stores in the first half, and is also building up internet sales, which currently represent around eight per cent of total sales.
Arden analyst Nick Bubb said: “So far the SuperGroup trading statement has not reassured investors as much as we’d have expected, with the bears dwelling on the vibes about a weak May rather than a strong June... The key news is that they have seen a ‘marked improvement’ in UK Retail trading in the last three weeks.”
SuperGroup had an impressive debut on the FTSE 250 after its public offering at the beginning of 2010.
Within a year it had almost quadrupled in value, from 500p at IPO to 1,899p by February this year. Shares closed down 37p at 863p yesterday.
Collins Stewart analyst Wayne Brown said: “If SuperGroup manage to achieve growth targets then the shares look cheap, but the current rating sets expectations high.”