Pressure on Christopher Bailey to Turn Burberry Around
Pressure on Christopher Bailey to Turn Burberry Around
Christopher Bailey, the CEO and chief creative designer for the luxury goods giant Burberry is faced with turning the company’s low sales record around. The global luxury goods industry has suffered from economic uncertainty in the past few years, especially in China and Hong Kong which contributes 30-40% of Burberry’s global revenue. Burberry’s position as an inclusive brand means that Bailey must now find a way to increase profits without compromising on the brand’s ideals. Shares are trading at more than 3 year lows and the market value is at 4.9 billion pounds, 43& lower than its peak in February 2014. Tom Gadsby from Librium Analyst said of the company’s expansion in Asia, “The main concern is what was once a strength has become a weakness. They have very good global coverage but that does mean that 2/3 of their sales are in areas of the market that are going backwards”. Hedge funds are betting that stock prices will fall and subsequently shares are being shorted ahead of the trading update. The 44 year old has a lot to prove of his managing credentials in the upcoming months.
Pressure on Christopher Bailey to Turn Burberry Around
