FIRST AIRED: November 9, 2017

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

×

Transcript

00:00:00
>>
MUSIC]
00:00:03
With items often costing thousands of dollars, the average consumer might already considered Burberry, a luxury brand. But the UK fashion giant is changing it's strategy, to move even further up market. To ensure it's sitting firmly in luxury, there's a $15 million game plan. That involves focusing on leather goods, updating it's fashion range more regularly and closing some retail and wholesale stores in areas considered insufficiently swanky.
00:00:32
It's a move to enhance profit margins that have proved elusive under outgoing designer, Christopher Bailey. But the long awaited strategy update failed to convince investors. Shares falling more than 10% after the announcement on Thursday, that despite Burberry's better than expected first half resorts, which saw revenue sales and adjusted operating profit rise.
00:00:53
A lot is being credited to Bailey who is the company's top designer for 17 years. He announced his departure last week, and there's a tough act to follow for new Chief Executive Marco Gobbetti. But Gobbetti enters the luxury, luxury market at a good time. Thanks to thriving demand from Chinese customers.
00:01:11
Worldwide sales are expected to grow 6% this year.
SOUND]