Superdry owner SuperGroup said quarterly sales soared by a quarter, following strong demand across the group, in particular womenswear, as it moves into the autumn period with confidence.
The fashion retailer said total group sales for the quarter to July 28th increased by 25.7% to £75.0m, after what the group described as a 'solid trading performance in line with management expectations.'
Retail sales in the period were up 17.6% at £53.2m on the same period a year earlier. The group's own stores and e-commerce channel saw like-for-like (LFL) sales rise 8.5% for the quarter.
Wholesale sales for the period increases 50.8% to £21.8m on the prior year.
"However, reported revenues on a quarter-by-quarter basis can be influenced by the timing of dispatches, particularly over the quarter-end. A better indicator of underlying Wholesale performance can be taken from the autumn/winter 2013 order book which shows growth of 26% on last year," the group explained.
Chief Executive Officer Julian Dunkerton commented: "We have started the year in fine form and have continued to build momentum in both the Retail and Wholesale divisions. The spring/summer 2013 ranges have performed well across all channels with further progress made in womenswear."
"Whilst there is still much to do this year, this performance coupled with our continuing international expansion, in particular the signing of the two new major partners, gives me confidence in our ability to continue to meet expectations as we head into the autumn period," he added.
Analyst Bethany Hocking at Investec stressed that comparatives from the year before were the "weakest" in the first quarter.
She added that while overall the numbers represented an encouraging start, management had set out the current period as "a year of investment" and this was still at an early stage, so she has made no changes to forecasts.
Wayne Brown at Canaccord Genuity was more excited and noted the announcement was the seventh consecutive positive trading update from the new management team.
"Not only is the group meeting expectations on store development but the enhanced ranges and increased investment behind design are clearly driving an acceleration in quarterly sequential growth."
Acknowledging the year of investment, he could see the benefits from the new distribution centre, IT enhancements and improved supply chain "as fundamental to the delivery of long-term sustainable growth".
Brown said he believed Supergroup should trade at parity with Ted Baker yet was trading at a 35% discount on his estimates, and a 30% discount to its broader international peer group despite "growth circa three times greater before we even consider its premium return profile, higher cash build up and the significant international and online opportunity ahead".