SuperGroup sharpens up supply chain

SUPERGROUP yesterday outlined plans to tackle future supply chain problems after the retailer was caught with a summer stock shortage that triggered a fall in its share price.

The company, whose brands include Superdry, gave a hit list of possible hurdles to its growth in its annual report.

The document also highlighted the firm’s expansion programme and issued sales figures that showed a like-for-like jump of 48 per cent in the week to 10 July.

SuperGroup has taken the lease on a Regent Street building, which is to become its new flagship while its online operation is being revamped.

But in May chief executive Julian Dunkerton admitted: “We had too many hoods and jackets out and not enough flip flops and espadrilles,” as he explained why sales growth had slowed.

The admission sent the company’s shares down by 22 per cent.

In a warning about how the brakes could be put on expansion, the annual report said: “Growth will depend on the ability of the group to expand operations and to develop its supply base, group infrastructure and people.

“We recognise that, as Superdry grows, we must broaden our supplier base in order to manage risk and meet growth expectations.” The annual report also listed directors’ pay, which was frozen at 2010 levels.

Dunkerton earns £400,000 and has 26,000 shares in the company. Under the company’s remuneration policy, top executives can earn bonuses of up to 300 per cent of their salary.

The company made a pre-tax profit of £47.3m in the year to May, up 110 per cent on 2010. Group revenue was £237.9m, up 71 per cent.

Meanwhile the total number of UK stores was increased by 18 to 60.