🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Reuters Summit-Burberry CEO sees no benefit from consolidation

Published 06/08/2009, 09:10 AM
Updated 06/08/2009, 09:32 AM
CFR
-
BRBY
-

(For other news from the Reuters Global Luxury Summit, click on http://www.reuters.com/summit/GlobalLuxury09?PID=500)

LONDON, June 8 (Reuters) - Consolidation amongst global luxury brands was unlikely to benefit industry players, the chief executive of Britain's Burberry Group Plc said on Monday.

"What can they (suitors) give us that would drive greater shareholder value than what we're already doing with the brand, with the product?" asked Angela Ahrendts at the Reuters Global Luxury Summit in London. Burberry is periodically talked about as a possible bid target for luxury groups such as Richemont SA and LVMH.

"When I look at the big conglomerates in our industry and look at all the brands that have been acquired ... isn't it still the single brands that get the investment and those are the ones that are performing?

"Have there really been any brilliant stories with all of those smaller brands that were acquired in those portfolios? I don't know the value added to the industry," said Ahrendts.

She said it was healthier to have a broad range of luxury companies competing against each other to a diverse range of retail partners.

Chief Financial Officer Stacey Cartwright, added: "Our own philosophy is let's just concentrate on what we can control, get on with the job and not get distracted by some of that chatter that hits the markets from time to time."

Last month Burberry reported a 12.5 percent fall in 2008/09 profit and said it was planning for trading to remain tough.

Shares in Burberry, which have lost 22 percent of their value over the past year but have increased by 58 percent over the last three months, were down 7.5 pence at 391.5 pence at 1408 GMT, valuing the business at 1.76 billion pounds ($2.79 billion). (For summit blog: http://blogs.reuters.com/summits/) (Reporting by James Davey; Editing by Rupert Winchester)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.