Wednesday, January 16, 2008

Burberry is Doing Well or Not?

WWD reported today that “revenues at Burberry rose 23.3% to $519.6 million from $394.6 million in the third quarter, boosted by growth across all product channels and geographic regions.” However, the Wall Street Journal depicted a slightly different picture. Hmmm
The Wall Street Journal [WSJ] noted that Burberry’s share price fell approximately 16% on news they may not meet analyst expectations for the year. The company reported to the WSJ that sales were only slightly off but generated mainly from markdown prices (not so good because less profitable.)
This is bad news for Burberry since they have been trying to expand and offer more profitable accessories to their collection.
The bottom line is this slow down is affecting all markets including luxury and the negative outlook is contagious to even those most fortunate.

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