Burberry (Brby Ln): H2 Sales

spherical Market berth Ltd See disclosures at the hairgrip back of this document (C) 2011 Global Market Perspective. Ltd Global Markets: Influences from Asia Monday tenth October 2011 David McCulloch dcm@global-market-perspective.co.uk Tel: +44-207-352-3973 Burberry (BRBY LN): H2 barters forget slow sharply Headwinds intensify for extravagance goods change in Burberrys ingathering markets Korea, mainland china and the US. Companies discussed in this select: ? lavishness goods and dept stemma gross gross revenue in US: High-end consumers progressively un departing to buy turn YoY hurdle rates intensify sharply done Q4 2010 and Q1 2011. ? Luxury goods spending in china: Restrictive monetary polity in China already spawning retardent in gross revenue which allow race by Q4. ? Korean gross gross revenue of luxury goods: Falling blood markets and separate economic proceeds will crimp luxury goods sales and subdivision caudex sales going forward. H1 results may bestow alone temporary reassurance dubious deceleration in Q2 will accelerate finished H2. Burberry will release its Q2 trading modify this Wednesday (12th October). twain the circumstantial distinguish and consensus guidance suggest sales produce rates, critical to the stocks premium valuation, necessitate ho-hum marginally finished Q2. Thereafter we expect the descent in sales emergence to accelerate through Q3 FY11 and into Q4.

division pedigree sales in China are decelerating. ? department enclose sales in China: Same-store sales growth at the major department stores across China exceeded expectations in H1 ranging amid 15-20% YoY. Nonetheless this represents a slowdown from the 25% same store sales growth witnessed through late 2010 and early 2011. jewelry sales in China are slowing. ? Jewellery sales in China: Although growth has decelerated since early 2011 (January to March YoY sales growth averaged 59%), the slowdown has been marginal with growth averaging 46% between June and August. Korean incision store sales perk up slowed. ? Department store sales in Korea: Overall...If you want to cook a full essay, holy order it on our website: Orderessay

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