The purveyor of overpriced plaid saw it’s stock sink to lows not seen since it’s IPO, as it warned of sluggish demand. Burberry’s CEO, Angela Ahrendts says, “After 30 years in the industry, I have never been more concerned about the market environment.” But it doesn’t haver her feeling pessimistic, quite the opposite: “I have never been more optimistic about the prospects for our company.”
What’s got her feeling so great? The new line of goods, of course, which includes a $187 denim handbag for the poors, and more stuff with the famous plaid pattern on it, as well as a new shipping method–no more through the air, it’s on the sea. How luxurious!
Bloomberg: Burberry Group Plc fell the most in London trading since going public in 2002 after predicting profit in the lower half of analysts’ estimates and slower store openings as the global economic slump saps luxury-goods demand.
Burberry slid as much as 18 per cent, wiping about 160 million pounds ($240 million) off its market value. Pretax earnings may be at the “mid to lower” end of analysts’ projections in the current fiscal year, and its average selling space will increase less than 10 per cent next year, said the London-based company, which reported higher first-half profit as well.
The clothier also said sales to department stores and other third-party distributors may drop in the current half after predicting no change previously. Demand for luxury goods is slowing as shrinking economies and market turmoil cause even the wealthiest shoppers to cut back, weighing on sales and profits at companies from Bulgari SpA to PPR SA.
Bummer for some, but this doesn’t affect us. The only time we wear Burberry is to swim:
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