SATURDAY, 25 NOV 2017

 

CONNECT

Facebook Linked In Twitter
PwC_13/11-28/11_728x90px
GloriaJeans_266x90px
IMH LTD

Syllouris and Zhang Reaffirm Cyprus - China Close Ties of Friendship

Anastasiades: A New Cyprus Effort Must Be Well Prepared

IMH LTD
PwC_13/11-28/11_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

Juncker: Meeting with May Will Show If Brexit Progress Made

The president of the European Commission Jean-Claude Juncker said that a meeting with ...

Multiyork Furnishing Collapse Puts 550 Jobs under Threat

The UK furniture retailer has gone into administration, putting 550 jobs under threat. ...

David King Discusses London Property Market

David King, Director, Consulco Real Estate, spoke at Consulco’s ‘English ...

FROM AROUND GOLDNEWS

   

Reddy Reiterates New Zealand‘s Support towards Cyprus Settlement

New Zealand Governor-General Patsy Reddy has reiterated her country’s support to a settlement of the Cyprus problem, strongly commending the firm ...
   

Rahmon Stresses Need For Further Development of Ties with Cyprus

President of Tajikistan has stressed the need for further development of bilateral ties with Cyprus, especially in the fields of economy and tourism. President ...
   

Pamboridis Discusses the Cyprus NHS at CIBA Event

The Minister of Health, Dr. George Pamboridis accepted an invitation from the Cyprus International Businesses Association (CIBA), to inform the members ...
   

Juncker: Meeting with May Will Show If Brexit Progress Made

The president of the European Commission Jean-Claude Juncker said that a meeting with British Prime Minister Theresa May on December 4 will allow the EU to see ...
   

Multiyork Furnishing Collapse Puts 550 Jobs under Threat

The UK furniture retailer has gone into administration, putting 550 jobs under threat. The retailer will trade until Christmas at the earliest while ...
   

Kadis Highlights Need for Action to Promote Sustainable Development

Action needs to be taken, in order for the Education for Sustainable Development (ESD) to respond to the needs of the international community for social, ...
   

Pamboridis Performs Opening of HIV Checkpoint

In October, the Minister of Health George Pamboridis, on behalf of the President Nicos Anastasiades, performed the official opening of the first permanent HIV ...
   

Infocredit & LexisNexis Among Exhibitors at the 8th Annual AML and Financial Crime Conference

Infocredit Group and its strategic partner LexisNexis Risk Solutions were among the main exhibitors at the ACAMS 8th Annual AML and Financial Crime Conference ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

KEBE_Awards_14/11-08/12_300x250px
Gold_Digital_Edition_300x250px

IMH LTD