Burberry to shut stores that don't meet new luxury standards

Burberry to shut stores that don't meet new luxury standards”

Bailey, the company's chief creative officer, announced October 31 that he plans to leave Burberry in 2018, ending a 17-year stint in which he helped transform the brand into a global luxury icon. "We will build on the strength of our apparel and re-energise it". Cost savings and a reduction in tax rate will offset restructuring costs.

Adjusted earnings per share were up at 32.8p and the interim dividend was nudged up to 11p from 10.5p.

Marco Gobbetti detailed his outlook for 2019 and 2020 in his strategy update, saying that the company expects revenue and margins to remain stable.

Unveiling first-half results, Gobbetti pledged to liven up and increase Burberry's clothing, create luxury leather goods and accessories and revamp stores to make them more appealing.

Adjusted operating profit increased 28% to £185m, beating analysts' average forecast of £167m.

Burberry's new chief executive plans to move the luxury brand more upmarket by increasing its focus on fashion and leather goods and reducing sales to non-luxury outlets. "Digital revenue grew in all regions, led by mobile, while growth was strongest in our own stores in Asia Pacific", he added. However, Korea continued to decline amid a challenging economic environment.

The fashion giant launched Burberry Business Services in Leeds in October, consolidating shared service teams from the UK, Europe, Middle East, India and Africa. The chain said that a benefit from tourist spending in the United Kingdom slowed in the second quarter. A drop in the value of the pound had been attracting tourists to its United Kingdom stores but the annualisation of sterling weakness saw less overseas shoppers spending in the second quarter.

In Continental Europe, Italy remained soft while France and Germany improved in the second quarter.

Burberry lifted its interim dividend by 5% to 11p as free cash flow rose to £171mln from £75mln previous year.

Same-store sales rose 4% for the six months to the end of September, pushing revenues up to £1.26bn.

Due to expected cost savings of £60m and slightly less adverse effects from currency rates, Burberry gave a "marginal" upgrade to projections for the full year.

However, it warned that it was "mindful of the tougher comparative revenue base in the second half".

Like this


09 November 2017
Chloe Moretz & Brooklyn Beckham Coordinate Their Outfits at Xbox Event!
Beckham confirmed his reconciliation with Moretz in September by tagging the actress in a photo and telling fans he was "missing [his] girl".

09 November 2017
Zakir Naik will be sent back if India asks for extradition: Malaysia
India is in touch with Malaysia to secure the extradition of Dr Zakir Naik, the radical Islamic preacher. He said the Health Ministry had taken measures requested by Anwar and his family in the matter.

09 November 2017
Imran Khan visits Chitral, announces new district
In his address in Chitral, the Chairman PTI said that the government's responsibility is to provide facilities to people. Chairman PTI Imran Khan and Chief Minister KP Pervez Khattak announced a new district for Chitral.

09 November 2017
Expeditors International of Washington, Inc. (NASDAQ:EXPD) To Report Earnings
Saratoga Research & Investment Management increased Expeditors Int'l Of Wa (EXPD) stake by 7.91% reported in 2017Q2 SEC filing. Accern ranks coverage of publicly-traded companies on a scale of -1 to 1, with scores nearest to one being the most favorable.

09 November 2017
Interview with Stephen Willeford, Sutherland Springs Texas 'good guy with a gun'
He told KHBS his family has lived in Sutherland Springs for four generations and he has several friends who attend the church. Making eye contact, Willeford said he saw the Kelley fire at him twice, then returned fire with his EoTech-equipped AR.

09 November 2017
FMC Corporation (FMC) Releases FY17 Earnings Guidance
Chemung Canal Trust Company increased its stake in Bce (BCE) by 59.55% based on its latest 2017Q2 regulatory filing with the SEC. The company reported $0.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.59 by $0.08.

09 November 2017
Electro Scientific Industries, Inc
Another way to determine the effectiveness of a company's distributions is by looking at the Shareholder yield (Mebane Faber). The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.

09 November 2017
Pak Rangers arrive in India for DG-level talks
Both countries have earlier blamed each other for targeting civilians and multiple ceasefire violations at the border. With snow fall in Kashmir valley, the attention of Pakistan ISI will shift to lower planes in Jammu.

09 November 2017
Dragic scores 29, leads Heat past Suns
While Winslow did have a solid showing on Monday against the Warriors, it's still tough to buy this uptick. Monroe will join a big-man crew that includes starting center Tyson Chandler and reserve Alex Len.

09 November 2017
Average True Range of TherapeuticsMD, Inc. (AMEX:TXMD) stands at0.46
The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink . The return on assets stands at -66.6%, Return on Equity now is -74.2% and the Return on Investment value is -70.8%.