I would say Britain is one of the most creative countries on earth. It’s something we should shout about a lot more than we do. And today London is one of the fashion capitals of the world. British fashion is booming. SuperGroup (LSE: SGP) and Burberry (LSE: BRBY) are both British fashion success stories. But which is the better investment?
SuperGroup
Walk into a Superdry store, or browse the Superdry website, and you will be assaulted by a riot of colour, of shiny brands, and a burst of fresh fashion ideas.
Superdry is the youth fashion brand of the moment. It has combined 50s styling, fashion themes inspired from a visit to Tokyo, and cutting-edge modern fashion techniques. The products are premium, but affordably priced.
This company began as a market stall in the South West. Through entrepreneurial spirit and sheer bloody-minded confidence, it has expanded across the UK and now is expanding worldwide, from Europe to the Americas and Asia. Expansion, both across countries and by building its product range, has driven growth. This is a company that just keeps growing.
Yet the share price has taken a tumble recently, creating a buying opportunity. The shares may be out of fashion, but the clothes are as fashionable as ever.
Burberry
Take the colour beige, some tartan patterns and world-leading design, and then build a brand. Base this brand on the essence of Britishness. Out of nothing comes Burberry, the country’s leading fashion label.
This is a company that is many times the size of SuperGroup, and it has seen meteoric growth in recent years. Even if Burberry is targeted more at the luxury market rather than the youth market, the investment thesis is actually quite similar.
Burberry takes a fashion theme, works hard to build it into a stunning fashion brand and then takes it global. Far Eastern markets can’t have enough of Burberry, and this is why this company has been booming.
Foolish bottom line
So which company should you buy into? Well, I would say both companies are worthy growth buys, and are on similar P/E ratios. But I just feel that SuperGroup has more room to grow, and is the younger, fresher brand. So my pick would be SuperGroup.
