Retail & Tourism News

SuperGroup chief executive releases bonuses to push salary to £1.7million

Share Article

Written by: Andrew Merrell | Posted 11 August 2017 15:18

SuperGroup chief executive releases bonuses to push salary to £1.7million

Shareholders may not mind if they consider SuperGroup to be delivering adequate dividend, but some may pause for thought about the reported doubling of Euan Sutherland’s salary.

The former chief executive officer for the Co-operative reportedly received 85 per cent of his bonus in 2016 taking his usual £602,862 salary to a cool £1.7million.

In case you were worried how the boss of the Cheltenham-based fashion retailer will cope when the bonus is all gone, according to The Times his basic will also rise a very nice looking £700,000.

In a statement on the firm’s website it said it had sent shareholders its annual report and accounts for the year ended April 29, 2017, and notice of annual general meeting to be held on Tuesday, September 12.

Peter Bamford, chairman of the growth-hungry ever-ambitious fashion house, was full of praise for Mr Sutherland’s stewardship in the annual report.

“Over the last year SuperGroup has continued its progress towards becoming a global lifestyle brand. Consistent and positive financial results have been delivered through a broadening geographic footprint and growth in all channels – retail, e-commerce and wholesale – while further investments have been made in systems, logistics and people.”

He added: “Under Euan Sutherland’s leadership we have continued to build the breadth and depth of the leadership team in order to ensure that we have the capability to deliver both growth and operational leverage in the future.

“We are building a structured and professional organisation in which the culture of creativity and innovation established by Julian Dunkerton will thrive.”

Mr Dunkerton famously launched his clothing business, Cult Clothing, in 1985 on a market stall with a grant from the Princes Trust, launching the Superdry brand in 2003 with business partner James Holder before taking the modestly named SuperGroup to the City in 2010. Just how far the company has come since is spelled out clearly in the next statement.

“The economic environment has been tough and the political backdrop uncertain. The Brexit vote and fluctuating exchange rates have had the most significant direct impact.

“The Superdry brand has proved resilient while the increased exposure of the business to different countries, markets and currencies has been important in providing some insulation from that impact. Seventy two per cent of our total sales volume is now from outside the UK, while 98 per cent of our new retail square footage opened in the last year was overseas.

“Our wholesale business grew by 43 per cent and 89 per cent of this revenue was outside the UK.”

Its annual report tells shareholders SuperGroup’s turnover increased 27.4 per cent last year to £752million.

Underlying group profit before tax was up 18.4 per cent to £87million.

Nick Wharton, chief financial officer, said: “We remain committed to investing in our business to support future growth. Capital investment totalled £60.9m (2016: £53.2m) reflecting the increased scale of our new retail space programme, leading to store related investment of £42.3m (2016: £30.7m) and the continued development of our group infrastructure.”

Share Article