FRIDAY, 14 DEC 2018

 

CONNECT

Facebook Linked In Twitter
MTN_07/07-10/04_728x90px
GloriaJeans_266x90px
IMH LTD

Anastasiades Discusses with May the British Bases Issue Ahead of Brexit

Savvas Angelides Meets his Irish Counterpart in Dublin

IMH LTD
PwC_Impact_30/11-16/12_468x60px

INTERNATIONAL

brought to you by CIPA

Burberry to Close Some Stores and Stop Outlets That Are Not Sufficiently Upmarket

Burberry to Close Some Stores and Stop Outlets That Are Not Sufficiently Upmarket

Luxury goods retailer Burberry is planning to close some stores and stop selling in outlets that are not sufficiently upmarket. The new strategy was announced along with its half-year results, which showed like-for-like sales up 4% and a 24% rise in operating profits to £127m.

Burberry has been cutting costs for some time and says it cut out another £20m, giving it savings so far of £40m. Shares in the company fell 12% following the announcement.

The brand said that it intended to focus primarily on luxury shoppers, by creating "compelling luxury leather goods and accessories". It intends to close an unspecified number of non-luxury retail and wholesale stores, as well as refurbishing other stores.

"Today the sector has changed and the luxury consumer demands innovation, curation and excitement from brands and creativity at every turn," Burberry said in a statement.

Its announcement comes just nine days after Burberry's chief creative officer Christopher Bailey, who has been with the brand for 17 years, announced that he would leave the company at the end of 2018, the BBC reports.

Steve Clayton, manager of the Hargreaves Lansdown Select UK Growth Shares fund, which owns shares in Burberry, said: "It's a text-book luxury brand repositioning exercise, which should leave Burberry jostling up against the world's most exclusive names, with the margins to match, but this will take time and in the near term, sales growth will be held back and the group must invest more to achieve its goals. "We think the plan makes sense." City Index also agreed that Burberry's strategy update made sense, but said it was "essentially a profit warning".

"The stock gained more than 40% between mid-June last year and Wednesday's close, as hopes built that installation of CEO Marco Gobbetti, renowned in the luxury world, would accelerate growth, but his sound plan of action appears to offer a lower hurdle for near-term performance than investors expected."

 

MORE ON INTERNATIONAL

Cloud Computing Services Used by More Than One Out of Four Enterprises in The EU

In 2018, 26% of EU enterprises with at least 10 persons employed purchased cloud ...

GDP and Employment both up by 0.2% in the Euro Area

Seasonally adjusted GDP rose by 0.2% in the euro area (EA19) and by 0.3% in the EU28 ...

UK: Wages Rise at Fastest Pace for Decade

Wages are continuing to rise at their highest level for nearly a decade as Brexit ...

FROM AROUND GOLDNEWS

   

Cloud Computing Services Used by More Than One Out of Four Enterprises in The EU

In 2018, 26% of EU enterprises with at least 10 persons employed purchased cloud computing services. Cloud computing usage grew rapidly over the last few ...
   

Annual Growth in Labour Costs at 2.5% in Euro Area

Hourly labour costs rose by 2.5% in the euro area (EA19) and by 2.7% in the EU28 in the third quarter of 2018, compared with the same quarter of the previous ...
   

Public Sector Employment Reaches 66,698 People

The employment in the Broad Public Sector for the 3rd quarter of 2018 was 66,698 persons. The employment in General Government was 60,777 and in the Publicly ...
   

Job Vacancies Increase by 63%

The number of job vacancies for the 3rd quarter of 2018 was 7,667. The number of job vacancies increased by 2,964 (63.0%) compared to the same quarter of the ...
   

Apple to Create $1bn Texas Base

Apple has announced plans to build a new campus in Austin, Texas, saying the project will involve a $1bn (£790m) investment, the BBC reports. The ...
   

Savvas Angelides Meets his Irish Counterpart in Dublin

Cypriot Minister of Defence Savvas Angelides, met in Dublin with his Irish counterpart Paul Kehoe during an official visit to Ireland, the Cyprus News Agency ...
   

Savvas Angelides Meets his Irish Counterpart in Dublin

Cypriot Minister of Defence Savvas Angelides, met in Dublin with his Irish counterpart Paul Kehoe during an official visit to Ireland, the Cyprus News Agency ...
   

Anastasiades Discusses with May the British Bases Issue Ahead of Brexit

The President of the Republic of Cyprus Nicos Anastasiades held a brief discussion with British Prime Minister Teresa May on the protocol concerning the ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Beluga_Xmas_05/12-01/01_300x250px
Dale_Carnegie_Leadership_300x250px

IMH LTD