Business

Supergroup shares hit as sales growth slows

Shares in Supergroup, the company behind the Superdry fashion brand, have slumped 23% after a slowdown in its sales growth.

Supergroup said total sales - which include those of its two other labels, 77Breed and SurfCo California - rose 61% to £66m in the quarter to 1 May.

This compares with sales growth of 87% seen in the preceding three months.

The Cheltenham-based firm said it had not released its summer lines early enough for the warm April.

Its chief executive Julian Dunkerton said: "We had too many hoods and jackets out and not enough flip flops and espadrilles."

He added the slowdown in sales was merely a blip, and that the firm was now looking at entering the Chinese market.

"That's the big prize without a doubt," said Mr Dunkerton.

"We don't want to do anything that isn't a spectacular deal and a spectacular deal will come."

Supergroup owns both its own stores, and sells its clothing wholesale to other retailers.

It was founded in 1985, and today owns 71 outlets, with operations in 36 different countries.

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