This information has been prepared by IG, a trading name of IG Australia Pty Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Supergroup (full-year earnings 3 July)
Supergroup's results were published in a short form on 29 June due to a theft from an employee that raised concerns external parties may have seen the figures in advance of the market. The firm published edited highlights, which showed that revenue rose 27% to £752 million for the full year to 29 April, while underlying pre-tax profit rose 18.4% to £87 million. E-commerce rose 35% while wholesale revenue rose 43%. It looks like Supergroup’s turnaround plan remains on track, as it seems to boost overseas expansion, but underlying gross margins fell 130 basis points to 60.2%.
The shares dip to £14 several times in 2017, but each incident has seen the buyers step in. However, the shares have been capped at £17, so while we are in a rising trend a major step-change will be at hand, in due course. Recent gains have found resistance at £16.32 and £16.63.
.jpg)
