Years Of Reform Failed To Revive Burberry Fatigue

In the pition period of product upgrading, the Burberry Group PLC (BRBY.L) Boboli, the largest luxury group in the UK, has already slowed down its weak retail sales.

The chief operating and finance officer, Julie Brown, desalinated the impact of the Chinese market at today's performance telephone conference, instead warning the serious potential impact of "no agreement to get rid of Europe".

Burberry Group PLC (BRBY.L) fell 2.96% early on Wednesday, and rebounded up to 2.36% after the conference call.

Julie Brown pointed out that if the United Kingdom had no agreement to take off Europe, it would need to trade according to the current provisions of WTO, and Burberry Group PLC EBIT would lose millions of pounds per year because of the increase in tariff fees.

What's more, because the group's production base is located in Yorkshire, the Julie Brown, the biggest problem facing them is to protect the supply chain.

She explained that the import and export of large quantities of raw materials, samples and finished products between the United Kingdom and the European Union countries will result in logistics delays caused by customs clearance, which will affect design, product development and customer performance. In European stores, for example, the group can only deliver orders within one to two days. If the border inspection is carried out in the future, there will be no guarantee of effectiveness. In order to alleviate the impact of the group, it is necessary to raise the inventory level in the European market, which will reduce internal efficiency and will inevitably affect the balance sheet and cash turnover.

She also revealed that the group had set up a special team to deal with the problem of Europe.

According to the current treaty, Britain will officially leave the EU in March 29, 2019.

James Dyson, founder of private Dyson Ltd., and James Dyson, a former EU supporter, yesterday announced the move to Singapore after the group headquarters moved to Singapore.

Julie Brown told analysts today that Burberry Group PLC Bo Boli will not leave the UK, and the group has not adjusted its full year performance outlook as at the end of March.

In the three quarter of December 29th, Burberry Group PLC Boboli achieved a retail income of 711 million pounds, 1.1% less than the 719 million a year earlier, and a fixed exchange rate reduction of 2%.

Same store sales recorded a growth of 1%, less than 2% of market expectations, or 3% of the one or two quarter.

The management did not provide specific data for each market. It only pointed out that the Asia Pacific region benefited from the median digit growth in the mainland of China. Tourist consumption of EMEIA increased and the trend of American passenger flow was weak.

Although Riccardo Tisci had joined Burberry Group PLC bolieu as chief creative officer in early 2018, the first complete series released in London Fashion Week Last September will be fully available next month.

Marco Gobbetti, group chief executive, pointed out that in the past year, marketing promotion around Riccardo Tisci has established brand fever and changed consumer's inherent cognition of brand design. He also expressed satisfaction with the development of high-end brand.

Given that Burberry Group PLC Bob Lee has failed to establish a sustained recovery trend over the past few years, the market can only wait and see.

The Citigroup Inc. Citigroup analyst who gave Burberry Group PLC (BRBY.L) "neutral" rating pointed out that the growth rate of the group is still far below that of the Kering SA (KER.PA) which is expected to have high growth in the holiday season.

The bank also recognized its management's efforts in innovating product design and store concept, cleaning up wholesale distribution, focusing on improving sales efficiency, e-commerce and cost control, but believed that the recovery time and scale of the brand were yet to be verified.

Rogerio Fujimori, a luxury analyst at RBC Capital Markets plus Huang capital market, said that although the new creative director's high-profile publicity has created a lot of topics, other brands such as Gucci Gucci and Louis Vuitton Louis Weedon have also successfully created the heat.

"For all luxury brands, what they currently participate in can be said to be a game of growth in the industry which has slowed down in previous years," Rogerio Fujimori wrote in the research report.

German investment bank Berenberg berlberg bank this week lowered the rating of Burberry Group PLC (BRBY.L) from "buying" to "holding". The bank believes that the market value of Burberry Group PLC boblie is too high in the context of Sino US trade war, China's GDP growth rate in 2018 has reached a 28 year low and global economic instability has increased.

Julie Brown told analysts today that sales of Chinese groups were slightly increased worldwide.

She pointed out that because of the weakening of the renminbi, more and more Chinese people are willing to stay at home shopping, while the number of Chinese tourists in Hongkong, Japan and Korea has declined.

Compagnie Financi re Richemont SA (CFR.S), the peak group, Tiffany Co. (NYSE:TIF) Tiffany and Hugo Boss AG (c) Hugo BOS have reflected the same phenomenon in their recent earnings reports.

Burberry Group PLC (BRBY.L) rose to a maximum of 3.94% on Wednesday, rising 2.93% to 1828 pence throughout the day, and now has a market value of about 7 billion 500 million pounds.

Over the past 12 months, the stock rose 12.77%, winning 16.47% of the FTSE 100 index.

Author: Lin Biying