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British Luxury Brands Fall Below The Issue Price

2008/11/21 11:22:00 40

British Luxury Brands

Burberry, a well known brand, has fallen below London's stock market since its listing in 2002.

The global economic downturn has weakened the demand for luxury goods, which has just announced its latest profit forecast, which has been cut by half of analysts' expectations.

And it has to slow down its branches.

Burberry is a British company that designs, manufactures and sells luxury clothing.

Their products include men's wear and children's wear, and Burberry's handbags, scarves, feather decorations and perfume.

The company has branches in Europe, the United States and Japan, and many other OEM factories.

    巴寶莉的股票下跌了18個百分點,1.6億英鎊合2.4億美元的市值蒸發(fā)不見。其扣除稅前的本財年總收入,據分析師預計事實上或還有再降的可能。倫敦總部稱,巴寶莉平均銷售門店面積明年增長幅度將低于百分之十,而這也遠低于上半年的擴張幅度。

Burberry said that if there is no new situation, the turnover of its distributors and three tier retailers will also drop significantly in the half year.

The demand for luxury goods has been significantly reduced as the economy has shrunk and the market has been volatile. Even the wealthiest consumers have cut their spending. The same conclusion can be drawn from the recent decline in jewelry business Bulgari SpA and luxury retailers PPR.

"There is no doubt that 2009 will be the most difficult year for luxury enterprises."

John Guy, an analyst at MF Global Securities in London.

He suggested buying Burberry's stock.

Because next, Burberry may use traditional British style to stimulate sales.

Inherited lattice

Burberry says it has now replaced 1/3 of air pport by sea to save costs.

In order to attract customers, it will also speed up the development and production of new products on the basis of traditional grid patterns.

CEO Angela Ahrendts says the product under design is called "heavy weapons".

"I have been in this industry for 30 years, and I have never been so concerned about the market environment."

"At the same time, I never felt so optimistic about the company's future," Angela Ahrendts said.

Cheap handbag

Burberry is also preparing to produce a Nepal's handbag, priced at around 125 pounds to attract people who plan to control the budget.

Stacey Cartwright, chief financial officer, disclosed the news to magazine editors.

And she added that the company's most expensive products are still on sale.

Burberry is targeting growth in shoes, children's clothing and emerging markets.

It plans to increase sales by 10 percentage points in five years.

It will put more advertising budgets on the Internet, because compared to magazine ads, celebrities on the Internet will remain forever.

On the basis of the revised data, analysts expect Burberry's annual pre tax revenue to be between 160 million and 215 million.

In the series "sex and the city", Burberry's black fur crepe jacket was worn by actress Sarah Jessica Parker.

The style of the coat is created by Burberry, which is the image of a detective in a novel, or the role of a melancholy movie.


 

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