Fashion firm reports record Christmas

The group, which targets the youth fashion market and operates 59 stand-alone stores and 69 concessions, said UK retail sales surged 93.6 per cent to 51.7m in the nine weeks to January 2. The company now expects full-year profits to be at the top-end of market expectations.

Supergroup also said rising cotton prices will not have an impact on this year's profit margins as previously expected.

Chief executive and founder Julian Dunkerton said the company had renegotiated with suppliers in a move to offset the impact of escalating raw material prices.

Supergroup, which operates from Superdry and Cult stores, joins fellow retailers Marks & Spencer, John Lewis and House of Fraser in overcoming last month's adverse weather conditions and posting a strong Christmas performance. HMV, Debenhams and Next did not fare as well, posting a slump in sales over the festive season.