Total Group sales for the quarter increased by 18.5% to £116.6m, a strong trading performance that was in line with management expectations. For the half year, total Group sales increased by 21.1% to £191.6m
Total Retail sales in the period were £63.5m, an increase of 20.0% on the comparable period last year and for the half year were £116.7m, an increase of 18.8%. Like-for-like2 sales for the quarter were up 7.8%, and up 8.1% for the half year.
During the quarter the Group added 33,000 square feet of owned retail space4 taking the total to 573,000 square feet, a year-on-year increase of 17%. In the UK, the Group opened three new stores, and acquired two third-party franchise stores which were incorporated into the owned store estate. In addition two further stores were opened in Europe, one in Belgium and the other a 7,000 square feet store located in the Aeroville out-of-town development north of Paris.
Wholesale sales for the period were £53.1m, an increase of 16.7% on the prior year and for the half year were £74.9m, an increase of 24.8%. As noted in the Q1 IMS, reported revenues on a quarter-by-quarter basis are influenced by the timing of dispatches, particularly over the quarter-end. However, the half year revenue growth is in line with the previously published order book guidance.
The portfolio of franchised locations has increased by a further net 19 stores during the quarter, and a net 31 stores in the half year, to 173 stores. 21 franchised stores were opened during the period in: Austria (two), Denmark, France (two), Germany, Italy, India, Indonesia, Macau, Netherlands, Norway, Spain (two), Switzerland (four), Turkey (two) and UAE, whilst two franchised stores in Newcastle were acquired and included in the owned estate.
Germany agency acquisition
On 31 October 2013 a deal to take control of the agency operation in Germany was completed. The Group acquired seven stores and the rights to the German market for a consideration5 of £3.5 million of which £0.7 million will be settled in shares. This acquisition will allow the Group to benefit from improved Wholesale margins, accelerate the roll-out of German stores by investing its own capital, and retain the local operational and management expertise.
Julian Dunkerton, Chief Executive Officer, commented, "We have delivered another strong trading performance, which has seen good sales growth in both the Retail and Wholesale divisions. At the same time as delivering revenue growth we continue to build the platform to support our strategy and I am pleased to report that the Group remains on track with its infrastructure investments.
"E-commerce sales from Europe and the Rest of the World have now overtaken those from the UK reinforcing our view of the international appeal of the Superdry brand, an important step in delivering our international strategy.
"Our trading performance, the positive customer reaction to new product ranges and the preparation ahead of peak trading, provides me with confidence in our ability to meet market expectations."
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