Shares in U.K. retailer Supergroup PLC (SGP.LN) surged 25% Wednesday as renewed sales momentum calmed some of the market jitters that have beset the premium casualwear group since it flagged slowing sales growth at the end of the last fiscal year.

Reporting full year results that had been well-flagged at its pre-close trading update in June, the company said retail sales in the first 10 weeks of fiscal 2012 grew 48%, a return to type after a fourth quarter slowdown to a rate of 39% growth.

Last quarter's slowdown saw the company's shares halve in value in little over a month amid concerns over the company's mark-down policy. But Wednesday's trading update allayed some market fears about the sales trajectory for the group, which has been expanding quickly both in the U.K. and through wholesale franchises around the world since it was taken public just over a year ago.

While most of the U.K. high street has been battling with flat or declining sales of discretionary items, Supergroup's premium SuperDry brand, worn by celebrities including David Beckham and Zac Efron, has seen exceptional growth which, combined with international growth prospects, raised the bar of market expectations for serial outperformance.

Its strong performance Wednesday was in stark contrast to high street bellwether Marks & Spencer Group PLC (MKS.LN) which Wednesday said its modest 3.2% rise in first quarter sales was hindered by flat sales of clothing and homewares.

At 1151 GMT, Supergroup was the highest riser on the FTSE 250 Index, trading up 218 pence, or 25%, at 1095 pence.

The company said it expects to open 20 new stores in the U.K. this year, including a flagship store in London's Regent Street. 50 new overseas franchise stores are also earmarked.

Last year the company opened 21 retail and 44 franchise stores, contributing to a 71% rise in total revenue to GBP237.9 million and pretax profit of GBP47.3 million, more than double the GBP22.5 million a year earlier.

Net profit fell to GBP31.8 million from GBP72.2 million predominantly because of a tax credit last year.

By Kathy Gordon, Dow Jones Newswires; 44-207-842-9293; kathy.gordon@dowjones.com

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