Jim Armitage: Why I'm still dubious about SuperGroup

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The Independent Online

Outlook Julian Dunkerton is a man who is not afraid to wave red rags to bulls – or bears, for that matter. The founder and chief executive of Superdry fashion owner SuperGroup yesterday declared he had "proved the doubters wrong" over the fate of the company whose share price once stood at £18.20 before a string of profit warnings brought it crashing down as low as 265p a year ago.

I was one of those doubters. To a great extent, still am. I have serious doubts about whether it is wise for Mr Dunkerton to be spending up to £18m of investors' cash next year opening new stores in European countries with dubious economies.

However, Mr Dunkerton has gone a long way towards addressing the problems of the past. He now has a serious management team better capable of implementing his vision – hopefully there will be no repeats of the many operational screw-ups of recent times. He has addressed the problems repeatedly cited in the fashion press that the ranges were too monotonous with those big-logo designs: accessories and more subtle ranges are now more widely available.

But, while the shares may still have a bit further to go up yet, don't hold your breath for the heights above £10 again.