Fashion firm steps up European growth
Superdry fashion firm SuperGroup eyed major growth in Europe today after a deal worth €40m for its biggest franchisee.
SuperGroup said the acquisition of CNC Collections will allow it to speed up the opening of new outlets in France, Holland, Belgium and Luxembourg.
CNC, which owns 12 stores and runs 17 franchised stores, is expected to boost SuperGroup’s sales by €40m and profits by €8m in the first year alone.
SuperGroup, which has been the darling of the stock market since it floated in March, will now look at opening larger company-owned Superdry stores in shopping centres throughout its key European territories.
Shares in SuperGroup were up 7% as analysts upgraded forecasts.
Freddie George, an analyst at Seymour Pierce, said he now expected profits in the year to May 2012 to be €7.69m higher than previous forecasts at around €78.7m.
He added: “We see the deal as being very positive. We also continue to believe the company still has significant potential to open further outlets in the UK, expand the business overseas and develop its internet offer.”
The business began life on a market stall in Cheltenham more than 20 years ago but floated nearly a third of the business in March to fund growth – triggering a huge windfall for directors including founder Julian Dunkerton.
SuperGroup’s brands include Superdry and Cult shops, and so-called ’incubator brands’ SurfCo California and 77Breed.
The fashion firm targets the youth fashion market and operates 59 stand-alone stores and 69 concessions in House of Fraser.
