SuperGroup commits to full-price trading before Christmas

LONDON, Dec 12 (Reuters) - SuperGroup (Other OTC: SEPGF - news) , the British company behind the Superdry fashion brand, said it was trading well and, unlike rival retailers, would not go on sale before Christmas.

Chief Executive Julian Dunkerton said the first weeks of the Christmas season had demonstrated a continuation of the trading momentum delivered during the first half - a period when sales at stores open over a year rose 8.1 percent.

He said those store groups that decided to start sales before Christmas would regret it later. "Once they've done it, once they feel they have to keep doing it, personally I think it's a mistake," he told Reuters on Thursday after SuperGroup (Frankfurt: 49S.F - news) posted a 22 percent rise in first half profit.

"You need the public to believe in your brand," he said.

SuperGroup may be bucking the general trend in Britain where consumer demand has been held back by inflation growing ahead of wages.

Data published on Wednesday by retail research group Springboard showed a dip in shopper numbers last week and with a full two weeks to go before Christmas consumers may be holding out for more promotions.

Firms, such as French Connection (LSE: FCCN.L - news) , are already on sale. Very few commit to not going on sale before Christmas, with Next (Other OTC: NXGPF - news) , Britain's second largest clothing retailer, the notable exception.

"The feeling is we are probably doing better than our competitors at the moment," said Dunkerton, dismissing some suggestions that the Superdry brand lacks cachet in the trend-conscious youth market.

He pointed to eight consecutive quarters of like-for-like sales growth, adding: "The public have voted."

SuperGroup, which trades from 447 Superdry branded stores and concessions throughout the world, spanning 41 countries, made an underlying pretax profit of 17.9 million pounds ($29.30 million) in the six months to Oct (KOSDAQ: 039200.KQ - news) . 27, up from 14.7 million pounds in the same period last year.

Sales of its trademark T-shirts, hooded tops, check shirts and jogging bottoms rose 21.4 percent to 192.1 million pounds. Retail sales were up 19.3 percent.

First-half wholesale sales increased 25 percent, while the wholesale spring/summer order book for 2014 closed up 26 percent on 2013.

SuperGroup's shares have more than doubled over the last year as trading improved and management rebuilt credibility after a string of profit warnings in 2011 sent its shares plummeting.

The stock was, however, down 38 pence at 1,208 pence at 1018 GMT, valuing the business at 980 million pounds.

"We believe the strong brand momentum is sustainable and will come from owned new space growth in the UK and internationally as well as franchise growth. In addition, there is potential to stretch the brand into new product categories," said Investec analyst Kate Calvert, who raised her 2013-14 earnings forecast by 1.8 percent.