Tuesday, 13 July 2010

Stocks Rise For Luxury Brands - 13/07/10

As reported by Business Week, luxury goods stocks are on the rise. Bulgari SpA experienced their steepest increase in more than two weeks, as they “rose 29 cents, or 5.1 percent, to 5.96 euros.” As for Burberry, they have reported a “23 percent gain in annual profit on increased sales of high-margin accessories and shoes.” Earlier this year Burberry surged 7.6%, and announced plans to accelerate store openings later this year due to their annual profit increase.

For Burberry this profit rise comes at a time when shareholders may voice their opinion about executive pay packages, as 13% of last years voted shares were cast against the companies executive pay policy. Although shareholders are happy with the success of the brand, it may make them a target; they want sustainable success, but not at all costs.

Eyewear makers Luxottica Group experienced an increase of 51 cents, or 2.8 percent, to 18.87 euros, whilst Italian luxury goods group Tod’s “gained 2.05 euros, or 4.1 percent, to 52 euros.” Also in the eyewear market, Safilo Group, “surged 38.5 cents, or 5.4 percent, to 7.59 euros.”

Image credit: burberry.com

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Who's behind the MO DOWN

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, www.moluxury.com.au