Decisions of investments in the stock exchange - The case study of Burberry
- Introduction: General presentation
- Strengths and weaknesses
- Opportunities and threats
- Financial analysis and the
- Conclusion and recommendations
Burberry was founded in 1856 in Basingstoke (England) by Thomas Burberry. So, investors can consider that the company has a unique heritage associated with Great Britain because many people consider that the brand represents an authentic British lifestyle. First, let's take a look at the history of the firm:
1891: Burberry's retail business expanded to London when a shop opened in the Haymarket selling outerwear to sportsmen.
1910: the first French store was opened on the Boulevard Malesherbes, the site of the current store, in Paris.
1912: the Burberry store in the Haymarket moved to its present location at 18/22 Haymarket which today serves as the corporate showroom.
1924: George Mallory selected Burberry apparel when he attempted his ascent of Mount Everest.
1955: Burberry was acquired by GUS.
[...] Future trend Because of 2004 share trends we may assume that 2005 trend will in best case remain at this level or will probably decrease The first issue is that roughly £400 per share is not a fair valuation of the firm In luxury industry acquisitions are a usual phenomenon so it is possible that groups such as LVMH, Gucci Group or Richemont try to takeover the firm. Then, there should be consequences on the share price. And thanks to the premium, it should be a great deal for shareholders. [...]
[...] If last year a lot of stores were opened in Europe, today the brand has been developed in Asia: in Hong Kong, Singapore or Taiwan. But the criteria of selection are very strict, after three years the store must show a profit above Threats The luxury market is sensitive to the economic context The main threat for a luxury brand is the economic context. Indeed in the past years this market had a lot of difficulties because of the economic context. [...]