The BI-ME eNewsletter
LOGIN:
Burberry buys China retail operations
Source: BI-ME with agencies , Author: Posted by BI-Me staff
Posted: Sat July 17, 2010 1:23 pm
www alibaba.com
Meet worldwide manufacturers, wholesalers
& importers
in Alibaba now!

INTERNATIONAL. British luxury group Burberry said it has agreed buy the stores in China currently operated by its franchisee, to take full control as it continues with moves to unify the brand on a global basis.

The fashion company will pay £70 million (US$108 million) to take full control of 50 stores in 30 cities, including nine in Beijing and four in Shanghai, from its franchisee Kwok Hang Holdings of Hong Kong.

The deal also mean profits from the stores will move from simply wholesale earnings to retail, a move the company was expects to add up to £20 million to group operating profit in the 2011-12 year.

"This transaction is in line with Burberry's strategy of unifying the brand around the world, while at the same time increasing its exposure to retail and to high growth luxury markets," Burberry said.

The firm plans to drive productivity in existing stores and open new stores.

Burberry says it plans to expand in China, and open 10 more stores there this year.

On Tuesday Burberry beat forecasts with a 24% rise in first-quarter underlying revenue. Revenues were up 30% in Asia-Pacific and 26% in the Americas, but in Europe they rose only 20% from a year ago. The company said  is benefitting from its growing presence outside Europe.

Shares in the group closed up 1.14% at 799.5 pence on Friday in London, valuing the business at about £3.5 billion.

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: September 2, 2010
INTERNATIONAL. The triangle pattern has taken nearly 9 months so far, and a move over US$19.50 could start a multi-month run targeting US$26-US$29 per ounce for starters before a broad pullback.
date:Posted: September 1, 2010
UAE. Given the recent developments in Saudi Arabia and India, there is now a greater level of hope that the TRA and RIM will reach an agreement about the manner in which BB Messenger services are provided.
date:Posted: September 1, 2010
UAE. GCC Telecom markets are on the verge of saturation, while prices decline due to increasing competition, resulting in telcos profits being under very high pressure.