Aditya Birla Lifestyle Brands has implemented a 6% price increase to offset higher input costs while testing consumer willingness to spend during the festive season. According to reports from The Economic Times, the company, which owns brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England, has not passed on the entire cost increase to customers. Managing director Ashish Dikshit told investors that pricing represents only one part of the business strategy, with discounting also being a critical factor in sustaining growth. The company has also worked with vendor partners to minimise cost pressures, demonstrating a comprehensive approach to managing input cost inflation.
The company reported flat like-for-like sales growth in September, a significant decline from 5.3% growth recorded in the second quarter of FY27. As reported by The Economic Times, this slowdown comes just as the full impact of price increases begins to flow through in the December quarter, making consumer acceptance and discounting critical to maintaining growth momentum. The September quarter recorded zero growth, which Dikshit attributed largely to the shift in the festive calendar, highlighting the timing challenges facing the apparel retailer.
Demand was uneven across categories in the September quarter, with casual wear and athleisure accounting for much of the growth while wedding-related purchases remained subdued. According to Dikshit's comments to investors, the first half of the year saw significant growth in casual lines due to very little wedding demand in Q2. The company expects wedding-led categories, including ethnic wear, to perform better in the current quarter as the festive and wedding season gathers pace, indicating a strategic shift toward seasonal demand patterns.
The full impact of price increases will be visible in the December quarter, as the September quarter included a mix of old and new inventory with older merchandise not carrying the higher prices. Like-for-like growth at the company's lifestyle brands stood at 5.3% in the September quarter, compared with 6.6% in the first half. The company's strategy of balancing pricing with discounting will be crucial as it navigates the challenging retail environment, with Dikshit emphasizing that consumer response to the price increases will be key to sustaining growth momentum in the competitive apparel market.
