Burberry New CEO Took Office In Poor Stores

According to the world clothing shoes and hats net, Burberry Group PLC (BRBY.L)

The first task of Marco Gobbetti, the new CEO of the group, was to continue to streamline the plan after taking office.

Global

498 stores to explore the closing of poorly managed stores.

Although it benefited from the depreciation of the pound and the sharp rebound in China's luxury market, the British group delivered an accelerated first quarter performance in July. As of the first quarter of June 30th, Burberry Group PLC boblie's same store sales increased 4%, better than the fourth quarter and analysts' forecast of 2%, and the highest growth rate since the first quarter of fiscal 2016, of which the Asia Pacific region's growth rate reached 14%-16%, and EMEIA also had a high digit growth rate, which was slower than the double-digit figures for the 2017 half year of fiscal year ended March 30th, but the Americas still shrinking.

The group's president and chief creative officer, Christopher Bailey, under the control of Burberry Group PLC Boboli, is considered to be the three year of the group's failure. Despite some of the difficulties arising from the big market, in the past three years, the British brand has not been criticized even in the Japanese and American market. Even though the Chinese market has enjoyed a good growth, it has suffered some damage in China due to its Tmall brand image.

Marco Gobbetti, which is known for its strict control of quality and its stores, is in line with its management style at Givenchy Givenchy and C line CELINE. He has been good at strengthening brand distribution control and willing to clean up wholesale channels, rather than sacrificing short-term sales to protect and enhance brand image and improve productivity in the long run.

According to the world clothing and shoe net, Marco Gobbetti is currently in the United States. The market has 74 Burberry Boboli stores. In view of the situation in the US market, the group also admitted that management was ineffective. No matter in view of the sales role, Burberry Group PLC bolieli did not compete with the Department store industry like the rival Coach Inc. (NYSE:COH) (SEHK:6388) Cox group and Michael Michael (KOH), because the department stores usually disregarded the brand image and continued to make high discounts, which started a discount after the new product sold for a month, which was contrary to the brand strategy that had been believed by the company.

By the end of March, in the 2017 fiscal year, Burberry Group PLC Boboli wholesale business in the United States plunged 20% to 171 million pounds, dragging the group's wholesale business down 14% after the exchange rate was cut off, and reported revenue fell 3.3% to 613 million 900 thousand pounds.

In the first quarter of July, Marco Gobbetti was pleased and satisfied with the Burberry CEO's work and performance in the first quarter. However, he said that at present, the Burberry and the luxury goods industry are still undergoing major changes, so they will continue to attach importance to the work.

Another important signal is that Burberry Group PLC Boboli stopped the previous Liz building plan and continued to reduce SKU supply, which is in line with Marco Gobbetti's brand strategy.

The market is also concerned about Burberry's long-standing digital strategy. This strategy is also contrary to Marco Gobbett's brand C line, but analysts believe that for a long time, Burberry boboley has long been regarded as the digital pioneer of the luxury goods industry. It has a good marketing effect on the group and brand, and now the industry is also gradually embracing the online market. Therefore, Marco Gobbett should not stop the development immediately, but it will pay attention to the future of the brand in Tmall store in China. This may be in the absence of research on Marco Gobbett.

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