Britain'S Departure From Europe Could Bring A Chain Reaction To The Luxury Flagship Store In The US.

The pound fell to its lowest level in thirty years last Friday, making the region import high-end foreign products.

We have to pay higher cost.

The global financial market is also very weak, which brings pressure to the investment portfolio of affluent consumers, and their net assets and foreign exchange market volatility have a very close and direct relationship.

As the euro continues to fall, it will be possible for Europe to take off the US.

The flagship store brings a chain reaction, which also depends on the sales of tourists.

Because of the strength of the US dollar, foreign consumers have weakened the consumption expenditure in the United States. The British based retailers will face the complexity and high cost caused by trade barriers, because they will have to pay import duties and commodity taxes in other European countries. HanaBen-Shabat, a retail and consumption partner of corney, told reporters: "enterprises are more cautious when releasing" goods "from the customs, which will extend the time of delivery and delivery to stores.

The cost will increase. "

On Friday, MacquarieResearch released his earnings forecast for several retailers to British media, including Tiffany and Ralph Lauren.

For Europe, Britain is Ralph Lauren's largest market, accounting for 300 million of its total revenue of $7 billion 400 million.

Four percent of the brand's revenue was generated by sterling, which fell to its lowest level in 30 years last Friday.

Macquarie estimates that the UK could lead to a 1.6% or 8 cent increase in earnings per share in the fiscal year.

Tiffany, forty percent of the European sales of the brand came from the UK, with a total revenue of $202 million in the US $4 billion 100 million. Macquarie estimates that the UK's departure from Europe could lead to a 0.6% decrease in earnings per share or 2 cents per share in the current fiscal year.

The company's share price fell to its lowest level in three years on Friday.

In its latest financial statements, Tiffany warned, "for the US dollar, continued weak foreign currencies will require companies to raise their retail prices in order to maintain their global relative price structure."

Such adjustments are usually put in the right place to keep the goods at the same price globally to prevent consumers from hoarding a brand and thus to be sold in another relatively high price country.

However, any use of so-called "price coordination" will make British shoppers buy Tiffany's products more expensive, which may even cause them to stop buying the brand, resulting in a reduction in their sales and profitability.

On the other hand, retailers based on London Design, such as Burberry, but because more consumers will gain more sales for tourism consumption in Britain because of the cheap exchange rate of sterling.

The company's stock is one of the few rising stocks on Friday, rising by more than 2%.

"The ups and downs of currencies determine the cost of travel," said StaceyWidlitz, SW retail consultant's chief executive. "With the new level of sterling, London may be the next beneficiary of tourists seeking the most advantageous luxury paction.

This means that Burberry is a possible beneficiary. "

Luxury brands tend to open flagship stores in big tourism cities, and American cities now have currency syndrome because consumers spend more money on luxury goods in the United States.

For example, Tiffany, who made a large amount of foreign tourists in the United States, has about 25% money.

But the founder of PamDanziger, UnityMarketing luxury research firm, said that Britain would have the biggest impact on Europe, and that it should be related to trade.

But, she said, Britain's departure from Europe will undoubtedly cause turbulence in the short term, and in the long run, it will bring more control over the British brand.

British voters will take control of the EU's economy, she said.

The result of the vote is only the final parameter for the weakening of the luxury sector.

Bain said last month that personal luxury goods sold in the world in constant currency terms compared to last year, only 1% growth in the first quarter, "this trend is expected to last until the end of the year."

"The luxury market is stuck in a predictable future stagflation model," said ClaudiaD Arpizio, Bain's partner, who is also the leading author of the study. Before the vote, the analysis was that the weak luxury environment, the decline of tourism in Europe, the slowdown in the US and China, and the instability in the Middle East.

In general, even well-to-do consumers are not willing to spend their money on high-end goods, and the same is also reflected in tourism.