Superdry China launch confirmed

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SuperGroup, the parent of the hip casual fashion brand Superdry, has confirmed plans to enter China, as reported by Inside Retail Asia earlier this week.
The Superdry China foray will be a 50:50 joint venture with local company Trendy International Group. SuperGroup will invest up to £18 million to kickstart the new market, but says it expects the JV to be self-funding within two years of launch.
The group promises a “measured” roll-out program in China with Trendy managing the day-to-day business operations. SuperGroup will provide strategic brand support, design services and marketing.
SuperGroup CEO Euan Sutherland said of the move: “The joint venture in China with Trendy International Group, together with an extensive pipeline of new stores in our targeted European markets and continued momentum in eCommerce, provides confidence of continued long-term growth.”
The company announced a two per cent increase in net profit to £63.2 million in the year to April 25 April on revenue up 12.9 per cent to £486.6 million. Its retail revenue rose 17 per cent with same store sales growing 4.8 per cent.
Questions & Answers
Q.What is the financial commitment from SuperGroup for this new venture?
What is the financial commitment from SuperGroup for this new venture?
SuperGroup plans to invest up to £18 million to initiate the Superdry China joint venture. However, the company anticipates that the joint venture will become self-funding within two years after its launch.
Q.What roles will each partner play in the Superdry China joint venture?
What roles will each partner play in the Superdry China joint venture?
Trendy International Group will manage the daily business operations in China. SuperGroup will be responsible for providing strategic brand support, design services, and marketing for the Superdry brand in the new market.
Q.How did SuperGroup perform financially in the last reported year?
How did SuperGroup perform financially in the last reported year?
SuperGroup reported a net profit increase of two per cent, reaching £63.2 million, for the year ending April 25. Revenue rose by 12.9 per cent to £486.6 million, with retail revenue up 17 per cent.
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