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Shares Slip After Burberry Declares Deceleration
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The sound bites and statistics that are causing a stir in luxury circles, following Burberry’s slowed retail growth and sudden profit-warning The sound bites and statistics that are causing a…
Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.
PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.
In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”
The Fondation Cartier pour l’Art Contemparain building in Paris
The sound bites and statistics that are causing a stir in luxury circles, following Burberry’s slowed retail growth and sudden profit-warning
The sound bites and statistics that are causing a stir in luxury circles, following Burberry’s slowed retail growth and sudden profit-warning
“ As we stated in July, the external environment is becoming more challenging. In this context, second quarter retail sales growth has slowed against historically high comparatives. ”
Angela Ahdrents, CEO, Burberry
Burberry
19%
How much Burberry’s shares slumped following the surprise profit warning.
“ Burberry warned that annual profits would be at the bottom end of analysts’ expectations of between £405 million and £445 million, the first major disappointment for European luxury companies. ”
Morgan Stanley Analysts in a note to clients
NYTimes
20%
Coach disappointed in its results. Although the company posted a 12% revenue increase, the market sold 20% of the stock based on the report.
“ It may suggest that those who can afford luxury items are starting to snap their wallets shut. These babies can get volatile at the drop of a hat, and Coach’s 20% one-day decline demonstrates this danger. ”
Lawrence Meyers, President, PDL Capital Inc
InvestorPlace
3-4%
In Paris, shares in luxury fashion groups LVMH and PPR slid by 3.82 percent and 3.48 percent, to stand at 127.2 euros and 123.45 euros respectively. The overall French market was down 0.42 percent.
“ We are tightly managing discretionary costs and taking appropriate actions to protect short term profitability, while continuing to execute on our proven five key strategies. ”
Angela Ahdrents, CEO, Burberry
Burberry
4%
Ralph Lauren might be the next leg of the table to wobble. Revenue was up just 4% and earnings were up 5% in the last quarter, after the company enjoyed double-digit increases for several consecutive quarters.
“ We remain of the view that the strategy, luxury positioning and management team should lead to long-term sector outperformance. ”
Investec Securities analyst Bethany Hocking
AFP
Creative Strategist, Digital
Sophie Doran is currently Senior Creative Strategist, Digital at Karla Otto. Prior to this role, she was the Paris-based editor-in-chief of Luxury Society. Prior to joining Luxury Society, Sophie completed her MBA in Melbourne, Australia, with a focus on luxury brand dynamics and leadership, whilst simultaneously working in management roles for several luxury retailers.
