Monday, September 17, 2012

Bo BaiLi open luxury industry degenerative trend

"Harry Potter" (Harry Potter), actress Emma Watson (Emma Watson) have given Po BaiLi (Burberry) as a model. Now the luxury retail enterprise may need to point the magic.

On Tuesday the company's share price fell 21%, the reason is it report shows that in the last 10 weeks with shop sales flat year-on-year, and near the end of this period of time when begin to decline. In the investors view, this shows that even bo BaiLi famous dust coat, for it can keep out luxury industry experience wind and Europe in the global economy is not the only one no longer part of the scenery.

Asia, especially China's economic growth is slowing of brought big trouble. Bo BaiLi said, sales drop in geographic a common trend.

But now Asia is the most important, it was the fastest-growing area in, in the year ended march contributed 37% of income, sales realized a 43% growth. In China the consumption of the rich before in their growth slows is still strong, which is obvious to all. But due to the uncertainty of China's political situation, especially in the senior officials bo downcast, conspicuous consumption has become even more unacceptable. China's rich travel times also reduced, and hit the bo BaiLi in Europe sales.

Of course more than bo BaiLi a encounter Asian blowing wind. It said other retail enterprise growth also is in a slowdown. Bo BaiLi are for the first release the bad news and pay the price. But according to UBS said that in the past two years BaiLi bo than European luxury counterparts share prices 15% to 20% of the premium. Since 2007, in the change strategy, through the larger own store network sell more high-end product after, bo BaiLi by an average of 16% a year sales growth of leading the industry first, let investors admiration.

In sales growth can not reach the expected circumstances, investors have reason to doubt bo BaiLi undergo Asian economic deceleration impact whether ability than competitors stronger. Ubs said, on Tuesday after shares tumbled, now Po BaiLi corresponding 2013 expected return of p/e ratio is 14.5 times, with European counterparts almost.

As investors realize Asia alone can't support luxury sales, bo BaiLi shares may be with other companies, and further to fall of space.
"Harry Potter" (Harry Potter), actress Emma Watson (Emma Watson) have given Po BaiLi (Burberry) as a model. Now the luxury retail enterprise may need to point the magic.

On Tuesday the company's share price fell 21%, the reason is it report shows that in the last 10 weeks with shop sales flat year-on-year, and near the end of this period of time when begin to decline. In the investors view, this shows that even bo BaiLi famous dust coat, for it can keep out luxury industry experience wind and Europe in the global economy is not the only one no longer part of the scenery.

Asia, especially China's economic growth is slowing of brought big trouble. Bo BaiLi said, sales drop in geographic a common trend.

But now Asia is the most important, it was the fastest-growing area in, in the year ended march contributed 37% of income, sales realized a 43% growth. In China the consumption of the rich before in their growth slows is still strong, which is obvious to all. But due to the uncertainty of China's political situation, especially in the senior officials bo downcast, conspicuous consumption has become even more unacceptable. China's rich travel times also reduced, and hit the bo BaiLi in Europe sales.

Of course more than bo BaiLi a encounter Asian blowing wind. It said other retail enterprise growth also is in a slowdown. Bo BaiLi are for the first release the bad news and pay the price. But according to UBS said that in the past two years BaiLi bo than European luxury counterparts share prices 15% to 20% of the premium. Since 2007, in the change strategy, through the larger own store network sell more high-end product after, bo BaiLi by an average of 16% a year sales growth of leading the industry first, let investors admiration.

In sales growth can not reach the expected circumstances, investors have reason to doubt bo BaiLi undergo Asian economic deceleration impact whether ability than competitors stronger. Ubs said, on Tuesday after shares tumbled, now Po BaiLi corresponding 2013 expected return of p/e ratio is 14.5 times, with European counterparts almost.

As investors realize Asia alone can't support luxury sales, bo BaiLi shares may be with other companies, and further to fall of space.

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