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SuperGroup shares fall as promotional activity unnerves investors

Shares in SuperGroup dropped after it emerged that the young fashion business, which has a strict no-discounting policy, offered  some online customers 20% off in-store purchases last weekend.

Shares fell 68p to 969p as investors were unsettled by the initiative.

Arden analyst Nick Bubb said: “The bears got very excited on Friday about the news that online customers of Superdry got a voucher for 20% off everything in-store at the weekend, despite the long-standing policy of not discounting.”

House broker Seymour Pierce said that rattled investors should not see the promotional activity as a change in strategy and is “not in any way a change in policy re discounting”.

A SuperGroup spokesman said: “It wasn’t a discount it was a short term marketing promotion, just a one off.”

Meanwhile, shares in British luxury label Burberry rose on speculation that it was eyeing a takeover of iconic US luxury jewellery chain Tiffany.

Luxury good groups Richemont and PPR have both also been linked as potential suitors.

Readers' comments (3)

  • they have always been discounting, look at how much stock they sell on ebay, students have been getting 20% off for years.
    i hear they where also giving discounts in House of Frazer last weekend, thats a first.
    the Greed/ hype machine is coming to an end, when you play that publicity game sometimes it comes back to bite you.
    if you got any shares< SELL SELL SELL,

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  • If you decide to sell out as a brand, you have to face the consequences, and the only way is down from then on. Supergroup are no different.

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  • time for brands to stop selling on-line, they are just looking at massive margins from factory to retail. They use the retailers to build the brand then discount there products via their own channels and still make a bigger margin than wholesale.

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