Thursday, 16 July 2009

A Sales Rise at Burberry Meets with a Share Price drop - 16/07/09

An 8% rise was achieved in Burberry's first-quarter sales to 229 million pounds. Whilst it is an increase it is well below the previous quarter's growth of 14% and clearly not a strong enough rise to keep the share price from falling. The market reacted with a share price drop of 1.5%.

Although Emma Watson (she is the female star who plays Hermione in the Harry Potter films) is the new face of Burberry's advertising campaign that commenced a month ago, time will tell if Burberry's strategy of attracting a younger audience into the brand, than currently exists, can improve the next three quarters and achieve successive double digit increases.

Read more in this Forbes article.

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Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury,