The boss of Superdry has said that customers can expect price rises and no sales in its shops as the business tries to combat the increased costs it is facing due to runaway inflation.
Julian Dunkerton told the PA news agency that the company will hike prices by around 2% due to rising costs.
But it will also be able to offset the cost hikes by slashing the number of items the retailer has on sale, something that has been part of the Superdry plan since before Covid-19.
“No stores will ever have a sale again … and discounting is limited to a shorter period online and very limited,” Mr Dunkerton said.
“So patently we are less affected because of that margin shift internally by the headwinds of inflation.
“But we’re talking about 2% price rises, far less than has been mooted in the press.
“We’re an affordable brand and we will remain so, and it’s very important that we do.”
The price rises will be on “selected products,” Mr Dunkerton said.
The business reported a swing to a pre-tax profit of £4 million in the six months to late October, from a nearly £19 million loss a year earlier when shops were closed in lockdown.
Revenue dropped 1.9% though, despite the problems that shops were facing a year earlier.
It is down 25% compared to two years ago.
Superdry blamed that in part on Covid, but it is mainly due to the removal of promotions, Mr Dunkerton said.
“It’s very easy to push your sales up, that’s not difficult, it’s making money that’s the important thing,” he said.
He said that the 11-week period over Christmas has shown how well Superdry’s new lines are performing.
Jacket sales have jumped 40%, year on year and overall sales were up nearly 20%.
“I can’t tell you how important this is for us.
“This is truly a reset with teenagers coming back into the stores and buying products,” Mr Dunkerton told PA.
He said that miniskirts, long-line jackets and womenswear in general has moved well.
“It’s really significant and quite exciting.
“The work that we’ve been doing on products is really finally resonating with the consumer, that’s what it’s all about.”
He said that the company had ticked off improvements in jackets and knitwear and is now working on dresses.
