Reiss is considering dropping its entry price points as it seeks to attract more customers after suffering a fall in UK operating profit.
As part of the review of its price structure it could also increase the price of some of its top-end products.
Finance director Steven Downes said: “We need to make sure the price point is right. We think we can capture more customers with lower entry prices so that more people buy into the brand.”
He added: “It can stretch both ways. If you have a really great product you can demand a higher price. Affordable luxury can be at all levels.”
Reiss’s UK operating profit fell to£8.8 million in the year to January 31 from£9.8 million the year before, due to investment in domestic and international infrastructure. EBITDA for the group, excluding the impact of its US start-up operation, was£11.9 million. Sales grew 18 per cent for the period to£67 million.
Reiss is also seeking further efficiencies in its supply chain to create a faster route to market. “The dollar impact next year should remain neutral by looking at our sourcing base and where we buy from,” said Downes.
He said developing the Reiss brand further would be a priority next year. Former Stella McCartney visual creative director Andy Rogers joined Reiss as brand director in June. Rogers is working on redesigning the web site for launch next year and examining licensing opportunities.
“We are focusing on being a strong brand and not just another retailer,” said Downes.
He revealed that October and November had been difficult months, particularly for menswear, although certain items such as dresses continued to do well.
Downes said Reiss would be approaching the new year with caution. “You need to be able to manage the unknown. We have a strong base. We just have to leverage on that,” he said.
Finance director Steven Downes said: “We need to make sure the price point is right. We think we can capture more customers with lower entry prices so that more people buy into the brand.”
He added: “It can stretch both ways. If you have a really great product you can demand a higher price. Affordable luxury can be at all levels.”
Reiss’s UK operating profit fell to£8.8 million in the year to January 31 from£9.8 million the year before, due to investment in domestic and international infrastructure. EBITDA for the group, excluding the impact of its US start-up operation, was£11.9 million. Sales grew 18 per cent for the period to£67 million.
Reiss is also seeking further efficiencies in its supply chain to create a faster route to market. “The dollar impact next year should remain neutral by looking at our sourcing base and where we buy from,” said Downes.
He said developing the Reiss brand further would be a priority next year. Former Stella McCartney visual creative director Andy Rogers joined Reiss as brand director in June. Rogers is working on redesigning the web site for launch next year and examining licensing opportunities.
“We are focusing on being a strong brand and not just another retailer,” said Downes.
He revealed that October and November had been difficult months, particularly for menswear, although certain items such as dresses continued to do well.
Downes said Reiss would be approaching the new year with caution. “You need to be able to manage the unknown. We have a strong base. We just have to leverage on that,” he said.
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