Burberry: CEO Transition Offers Attractive Entry Point Into Long-Term Luxury Growth
Helix Investment Research
Helix Investment Research
Fri, Jun. 10, 7:54 AM
- Burberry (OTCPK:BURBY) says COO John Smith will leave the company in the summer of next year to pursue other interests. Smith has been at Burberry for seven years.
- Pressure has increased on senior management at the British fashion house with sales slumping in key regions.
- Previously: Steep pay cut for Burberry CEO (June 6)
Mon, Jun. 6, 8:49 AM
Wed, May 18, 9:04 AM
Wed, May 18, 8:09 AM
- Shares of Burberry (OTCPK:BURBY) are lower after the company reported a drop in pretax profit of about 10% and lowered guidance for FY17.
- Weak sales of luxury items from Asia to North America has hit the company along with some cost inflation.
- Looking ahead, Burberry plans to make significant changes to reduce expenses and complexity, including an elimination of about 20% of its products.
- Burberry is down 5.34% in London trading at last check.
- Previously: Burberry Group Plc ADR reports preliminary FY16 results (May 18)
Wed, May 18, 6:02 AM
Thu, Apr. 14, 8:42 AM
- Burberry Group Plc ADR (OTCPK:BURBY): 2H16 Revenue of £1.41B (-0.7% Y/Y).
- Comp sales declined 2% reflecting continued growth in mainland China, Korea and Japan; up 1% in excl. Hong Kong and Macau in H2.
- FY17 Outlook: Retail: In FY17, net new space is expected to contribute low single-digit percentage growth to total retail revenue.
- Wholesale: Burberry expects total wholesale revenue at constant exchange rates in the six months to 30 September 2016 to be down by around 10%.
- Licensing: Total licensing revenue for FY 2017 is planned to be down by about £20M at constant exchange rates (FY 2016: £42m).
- Press Release
Tue, Mar. 8, 3:41 AM
- A mystery investor has built up a stake of close to 5% in Burberry, FT reports, prompting Britain's best-known luxury fashion brand to arm itself against a possible takeover bid by seeking help from its financial advisors.
- A source close to the company said it had unsuccessfully attempted to reveal the client by asking HSBC, which is listed as the custodian for the position.
- Burberry shares +5.8% in London.
- Previously: Burberry playing defense against takeover bid (Mar. 07 2016)
Mon, Mar. 7, 3:28 PM
- Burberry (OTCPK:BURBY) is looking to protect itself from a hostile takeover, sources tell Financial Times. The company has tasked Morgan Stanley and Robey Warshaw in helping it play defense.
- An undisclosed investor has reportedly built up a stake of around 5% in the British fashion brand.
- Shares of Burberry ADRs are up 9%. The stock closed lower in London trading earlier before the report broke.
Tue, Feb. 9, 3:39 PM
Mon, Jan. 18, 11:02 AM
- Goldman Sachs sees 20% upside for select European luxury stocks as a bottoming out of earnings takes hold this year and fundamentals improve.
- Despite a forecast for global luxury sales growth to slow to 3.4% in 2016, the investment firm thinks some improving trends could lead to share appreciation.
- LVMH-Moet Hennessy (OTCPK:LVMHF) is upgraded to Buy from Neutral.
- Kering (OTC:PPRUF, OTCPK:PPRUY) is moved to Neutral after being slotted at Sell.
- Other names to watch for gains include Burberry (OTCPK:BURBY, OTCPK:BBRYF), Montcler (OTCPK:MONRF), and Salvatore Ferragamo (OTCPK:SFRGF, OTCPK:SFRGY).
Oct. 15, 2015, 6:20 PM
- Burberry (OTCPK:BURBY -7.5%) has named Wal-Mart Asia veteran Fumbi Chima as its new chief information officer, and charged with her with a number of initiatives including the upgrade of its platform with SAP.
- The company had rearranged its IT infrastructure this summer, combining inventory data for online and physical sales in China. But China's volatility has also been the source of Burberry woes as it affects high-end fashion buying.
- Shares tumbled 10.2% in London today as Burberry noted a slowdown in same-store sales to 1% in the first half, down from a year-ago 10%. The blame fell on lower spending in Hong Kong and mainland China, as well as a strong pound cutting tourist spending in the UK.
- Previously: China devaluation hits select consumer goods and services stocks (Aug. 11 2015)
Aug. 11, 2015, 10:00 AM
- The currency devaluation fired off in China is hitting select consumer goods and services stocks.
- China Southern Airlines (ZNH -18.2%) and China Eastern Airlines (CEA -17.4%) are feeling the sharpest impact.
- Macau gaming stocks trade weaker with Melco Crown (MPEL -2.7%), Las Vegas Sands (LVS -2%), Wynn Resorts (WYNN -3.1%), and MGM Resorts (MGM -0.8%) all lower.
- Luxury retailers are also feeling a pinch due to the F/X headache. Decliners include Tiffany (TIF -2.1%), Ralph Lauren (RL -1.3%), Gucci (OTC:PPRUF, OTCPK:PPRUY), Prada (OTCPK:PRDSF), Hermes (OTCPK:HESAF), Fossil (FOSL -1.5%), Michael Kors (KORS -0.6%), Coach (COH -1.7%), Movado (MOV -1.8%), Kering (OTC:PPRUF), Burberry (OTCPK:BURBY), and Swatch (OTCPK:SWGAY -5.4%).
Jul. 28, 2015, 11:23 AM
- Retail stocks are in-line with market averages despite a soft read on consumer confidence and more stock market losses in China.
- The S&P Retail ETF (NYSEARCA:XRT) is up 0.26%, while Wal-Mart (NYSE:WMT) is 0.48% higher.
- Some high-end retail stocks are putting in surprising gains including PVH Corp (PVH +1.7%), Michael Kors (KORS +1%), Ralph Lauren (RL +1%), Lululemon (LULU +2.4%), Luxottica (LUX +2.2%), Kate Spade (KATE +1.3%), Burberry (OTCPK:BURBY +2.1%).
Jun. 12, 2015, 9:32 AM
- Luxury retailers continue to struggle in China as consumers in the nation adjust to pricing disparities derived from currency fluctuations.
- Last year, luxury sales in China fell 11% while overseas purchases by Chinese tourists rose 9%.
- The tally for overseas purchases included the "grey market" where items are bought overseas then resold inside China.
- The trend has continued this year, despite efforts by companies to reset pricing.
- China luxury sellers: Gucci (OTC:PPRUF, OTCPK:PPRUY), Prada, Louis Vuitton (OTCPK:LVMUY), Coach (NYSE:COH), Ralph Lauren (NYSE:RL), Michael Kors (NYSE:KORS), Swatch (OTCPK:SWGAY), Burberry (OTCPK:BURBY), Tiffany (NYSE:TIF).
May 20, 2015, 7:52 AM
- Burberry (OTCPK:BURBY, OTCPK:BBRYF) cut full-year profit guidance due to uneven results in key global markets.
- The luxury retailer is facing a F/X challenge with rivals adjusting prices in China in relation to Europe.
- A new digital fulfillment approach in China will be adopted in the second half of the year, according to the company.
Apr. 20, 2015, 12:10 PM
- Research firm Global Blue says Chinese tourists increased their luxury spending by 67% in Q1.
- High-end retailers with stores in Europe received a good portion of the sales after a weak euro attracted tourists to buy in the region over Hong Kong.
- Last year, Chinese tourists increased spending by 18%.
- A reselling trend in China has accounted for some of the brisk growth, while also pressuring prices for luxury brands in China.
- Luxury retailers: Gucci (OTC:PPRUF, OTCPK:PPRUY), Louis Vuitton (OTCPK:LVMUY), Coach (NYSE:COH), Ralph Lauren (NYSE:RL), Michael Kors (NYSE:KORS), Burberry (OTCPK:BURBY), Tiffany (NYSE:TIF), LVMH (OTCPK:LVMHF, OTCPK:LVMUY), Richemont (OTCPK:CFRUY, OTCPK:CFRHF), Remy Cointreau (OTCPK:REMYF, OTCPK:REMYY)
Burberry is a global luxury brand with a distinctive British heritage, core outerwear and large leather goods base and some of the most recognised icons in the world. Burberry designs and sources apparel and accessories, selling through a diversified network of retail (including digital),... More
Sector: Consumer Goods
Industry: Apparel Stores
Country: United Kingdom
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