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Supergroup

  • 14-01-2011 7:48pm
    #1
    whysomoody
    Registered Users, Registered Users 2 Posts: 226 ✭✭


    Supergroup SGP.L

    This is a company I have been following closely for the last number of months. They manufacture the Superdry clothing brand. They have been THE IPO of 2010 in London, rising over 300% since they floated at £5.00.

    It is a real growth story with a strong and keen management team behind it. They have been performing really well, but are susceptible to cotton prices which has hampered the price somewhat of late.

    In their latest trading statement as of Tuesday they said that it has more or less mitigated the effects of the rise and cotton and had YOY sales growth of 90% over last Christmas.

    Goldman's had a price target of £21.00 on the stock 6 weeks ago, and I see no reason to disagree with it.

    anyone else in it?


Comments

  • #2
    delux
    Registered Users, Registered Users 2 Posts: 153 ✭✭delux


    I heard about it alright through Robbie Burns. He's been in and out of it a few times since 500p and made a lot from it. Not sure if he's still in it, but it seems to have been one of his top buys. I follow some of his stocks but didnt actually buy that one.
    Is supergroup similar to Mulberry? That's another he's in which is up about 300% in the past few months.


  • #3
    daveirl
    Closed Accounts Posts: 14,483 ✭✭✭✭daveirl


    This post has been deleted.


  • #4
    whysomoody
    Registered Users, Registered Users 2 Posts: 226 ✭✭whysomoody


    I agree Dave, its great to be in at the moment as its a super growth story and it's benefitting from great exposure and a high yielding sales strategy.

    I think the brand will have a fair bit of longevity as well as it is nowhere near saturation point, and has plently left to grow. they dont do sales as well which keep margins high and visibilty low which is good for a fashion brand as it appears more exclusive.
    I think the mgmt have done a great job so far as well, and seem to be pretty active which is positive in my view.


  • #5
    OfflerCrocGod
    Registered Users, Registered Users 2 Posts: 6,334 ✭✭✭OfflerCrocGod


    I hope that international growth will make this a fast grower for a few more years, still a hold for me. It's like Abercrombie and Fitch for the UK imo. Tons of potential.


  • #6
    whysomoody
    Registered Users, Registered Users 2 Posts: 226 ✭✭whysomoody


    OfflerCrocGod wrote: »
    I hope that international growth will make this a fast grower for a few more years, still a hold for me. It's like Abercrombie and Fitch for the UK imo. Tons of potential.

    Yeah exactly, and whilst to be fair it trading at a pretty decent sized PE ratio, it is certainly not out of place in the industry.
    It has been ticking away brilliantly for me over the last week or two, long may it continue.

    A key thing for me along with the reduction in the immediate exposure to the cotton prices are the online sales which were up 240% and their strategy of not having sales which keeps margins high.


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