A decline in like-for-like (LFL) sales at fashion retailer Supergroup was not as bad as feared in the first quarter, helping the stock to jump in early deals on Thursday.

The company also reassured the market by highlighting improving trends over the first few weeks of the second quarter.

Sales during the three months to 26 July totalled £87m, up 15.9% on last year. Retail revenues rose 13.6% to £60.4m while wholesale turnover increased 21.6% to £26.6m.

The company said that retail growth was helped by new store openings in mainland Europe which added a net 13,000 square feet to its portfolio.

However, LFL sales fell 3.7% against a strong first quarter last year which saw LFL growth of 8.5%. Issues such as shortages of key spring/summer lines and a highly competitive market place were also to blame, it said.

Nevertheless, analysts were expecting a bigger decline of 4.5% in LFL sales.

Furthermore, the company said that it has seen an improvement in LFL sales over the first five weeks of the second quarter following the transition to autumn/winter ranges. As such, LFL sales over the first 18 weeks of the financial year to 30 August were only down 1%.

"With our strong pipeline of new stores, particularly in mainland Europe, the continued evolution of the ranges and our improved infrastructure we remain confident that we have the platform to deliver profitable growth in the current year," said chief executive Julian Dunkerton.

The stock was up 9.3% at 1,143p by 08:35 on Thursday.

BC

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