Burberry holds steady, Retailers embrace cheap-but-chic, Primark sales soar, Retail stocks drop, Wakeley returns

Burberry S/S 09 ad campaign, courtesy of Burberry

Burberry wholesale sales slide (Drapers) “Burberry’s revenue rose 2% on an underlying basis and grew by 21% to £663 million for the six months ended March 31 but the luxury brand warned that wholesale sales would slide further in the next six months.” Do Discount Designer Duds Make The Grade? (WSJ) “Recession-scarred retailers are turning to collections of cheap-but-chic designer clothing to lure customers

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Burberry downgraded by JP Morgan, Uniqlo online in China, Apparel prices slip, theOutnet.com launches

Burberry Store, courtesy of Bloomberg

Burberry cut to neutral at J.P. Morgan (WSJ) “J.P. Morgan downgraded fashion company Burberry group to neutral from overweight, saying the group is now trading at a 5 percent discount to the luxury goods sector, compared to a historical average discount of 20 percent.” Taobao Partners with UNIQLO to Grow China’s Online Fashion Market (Businesswire) “UNIQLO, a new-style casual wear brand under Japan’s leading

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Chinese New Year marketing, Thomas Burberry axed, Iodice’s dress giveaway, Coach’s profit declines

Chinese New Year, photo courtesy of chateaugranville.com

Lunar New Year May Be a Tough Holiday for Sales (WSJ) In China, companies are using discounts and clever marketing practices to make people spend during the Lunar New Year holiday. Burberry to axe Thomas Burberry (Drapers) Burberry’s bridge line, Thomas Burberry, will be shut down but the company reported surprisingly strong sales for Q3, up 9 percent on a constant currency basis. Iodice To Give Away Free Dresses Instead of

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Defiant young designers, Burberry sales up, Extinct retailers, American consumer spending, India Fashion Week

Newcomers defy the odds in men’s fashion (IHT) Unfazed by the current dismal state of the economy, emerging designers such as Mihara Yasuhiro are bravely forging on with their menswear collections. Burberry Sales Rise, but Layoffs Are Planned (WWD) Though Burberry’s Q3 sales went up 30%, the company plans to embark on serious cost-cutting measures. (Subscription required) Retailers on the Extinction List (Seeking Alpha)

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ASOS up 68%, H&M, Abercrombie & Fitch’s skimpy sales, Burberry’s flat profits, Adidas’ SLVR

Online fashion firm ASOS H1 profit up 68 pct (The Guardian) In another signal that affordable online retailers could fare better than bricks and mortar operations in the economic downturn, ASOS H1 profit rockets up 68%. H&M Still In Fashion (Forbes) "Swedish-fashion retailer Hennes & Mauritz posted a decent set of October sales." But "analysts warned the company would not be able to avoid the ripple effects of the global financial crisis." Has Abercrombie Lost Its Shirt? (Motley Fool) Abercrombie & Fitch's  skimpy aesthetic is also reflected in the company's declining sales performance for Q3 2008. Profits flat at Burberry (Drapers) "Burberry saw sales rise 20% in the first half of the year with pre-tax profit flat during the period,…

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Milan Fashion Week | Commerce and creativity

While London is often the spark of new ideas and New York is confidently commercial, the Milan shows usually sit somewhere in between. They may not be the pushing the limits of fashion in terms of new ideas, but they specialise in striking the right balance between commerce and creativity. Many buyers and editors complained of an uncharacteristically inconsistent offering from Milan's usually focused designers last week. But we think there was a lot to be impressed by in Milan, especially from the some of the heavyweight brands who show there. Take Burberry, for example. Christopher Bailey is on a clear winning streak, softening his approach this season with the perfect autumnal mood for the urban birds who walked down…

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Boombox: Party’s over?

When London's only mega-luxury brand (Burberry) throws a launch party, invites the city's model-du-jour (Agyness Deyn), and recruits East-End club kids from the city's hippest club night (Boombox) to add to its street cred and sell its new fragance (Burberry Beat), it is definitely a formula for fashion marketing success.  Analysts and journalists have been commenting on the brand's new found hipness and pictures have appeared in all the right places, despite the extra-Zone 1 location and late start. For Boombox, however, it's likely to be a sign that the party's over. That's not to say that Boombox hasn't had a great run. From the start, it was an ultra-cool hangout for the East End fashion and music scenesters (and…

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IHT Supreme Luxury: Interview with Angela Ahrendts

The IHT is pumping out these videos faster than we can keep up. Each one has revelations of interest, so we're going to keep posting them for easy reference here. Have a look at this video with Angela Ahrendts, the CEO of Burberry. Ahrendts reveals that Burberry's wholesale and retail business is almost 70% apparel, making it quite different from many other luxury brands, whose businesses are concentrated in leather goods. She also says that Russian consumers form a significant portion of the business. Burberry's stores in Russia are amongst the most productive in the world and this productivity is based on fewer very large transactions as opposed to many transactions of a smaller size. Not only this, about 20%…

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