Barbour forced to raise prices
Upscale outdoor fashion brand Barbour said that despite continuing to enjoy “buoyant” sales it has been forced to raise prices as production costs escalate and the slowdown in consumer spending starts to bite.
Managing director Steve Buck has told The Telegraph newspaper that the company is facing “extraordinary challenges” having to contend with higher inflation and the cos-of living crisis.
Barbour noted it was facing a combination of price increases across materials, staffing, shipping, and energy as well as higher duty costs.
Buck told the newspaper: “The fiscal year 2022/23 will see some extraordinary challenges for our business. The ongoing impact of the pandemic, Brexit and the current global economic uncertainty has resulted in many challenges to margins across all channels and markets including rising costs and pricing pressures.
“We've had to increase some of our prices, but being very mindful of what many of our customers are experiencing, we have only passed on half of the cost increase in price.”
The company said sales grew by 32% to £286.6m in the year to April 2022, as it began to recover from the effects of severe lockdowns.
“We have felt the challenge of the cost-of-living crisis most in the UK and less so across Europe and Asia,” said Buck.
“Customers are being careful with their money but are continuing to buy good-quality investment pieces. Because of this, our sales, particularly in wax jackets have continued to remain buoyant.”
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