Burberry CEO Teams With Amazon to Spread Luxury

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May 21 (Bloomberg) -- Bloomberg’s Olivia Sterns examines full-year results from Burberry as new chief executive officer Christopher Bailey outlines his vision for growth, including a deal to sell a cosmetics line via Amazon.com. She speaks on Bloomberg Television’s “Bloomberg Surveillance.”

And rain boots, the brand is under new management and christopher daley is steering them towards perfume and makeup in a big way.

Olivia sterns is in london.

Olivia, this is burberry's first earnings report under him.

What kind of impression is he leaving with investors right now?

Are they impressed with his stewardship?

Lets the dog has gone sideways ever since angela ahrens announced she would be leaving for apple.

But overall investors do see this as a steady transition.

Christopher bailey has been with the company for 12 years.

A veteran, previously chief creative officer, in that role he headed up product development.

He is staying on as chief creative.

Having had that experience, people see him as create -- capable of the job.

He does, of course, have very big shoes to fill here.

Under angela ahrens in 2000 you saw sales triple and the stock price quadrupled.

He has a lot to do and ultimately it is very rare that the fashion designer is ultimately the ceo.

You only see that and fashion brands where the ceo is founder and entrepreneur, like ralph lauren.

This brings us back to the question that tom was asking yesterday, do designers make good managers?

He needs to put his stamp on the company and one way he is doing that is with perfume.

The deal they struck with amazon, lots of people questioned whether this dilutes their brand equity.

Selling it on amazon?

This is a big deal that is very interesting because on the one hand they are bringing their makeup production in-house, but on the other hand they are also changing up is to be vision, selling it on the masses.

They are pulling a lot of levers, thinking that this can be one of the areas where they can grow the fastest.

They think that fragrance will grow 25% in the coming year.

From the product control standpoint you have to wonder how they are going to compete with other big fashion brands.

This is actually a tightly controlled industry.

Most other fashion labels, like dolce and obama, they out source and license fragrances and cosmetics because they have the distribution power to then broker with department stores to sell the products.

Here you see burberry jumping the gun, going straight to amazon, straight to the masses, teaming up with alibaba and selling their goods there.

It is very interesting, burberry.com is one of the few luxury fashion houses with a very good e-commerce operation.

Olivia, hold that thought and stay with us.

David rose, founder of new york angels, this is about reinvention, right?

Burberry teaming up with amazon?

Does this work?

Lacks absolutely.

One decade ago the idea of selling online to the internet, it would have been a complete nonstarter, but today if you are not there -- they are not doing this and going direct to the consumer, alternately?

There will be problems.

Everyone has to figure out how to play in this new space.

Whether it works on not, we will all find out.

I expect it will be a huge hit, they have huge distribution using alibaba and amazon alone.

They are grabbing headlines, they will already be selling their stuff.

We are all sitting back talking about great creative directors for the spot.

If the ceo of the home shopping network amended, burberry lives in that world too.

Thank you so much for joining us from london, olivia.

Let's get to a data check right now.

We don't have that much housing data on the docket.

I know it is a big housing week overall, but we do have the fomc minutes that will be released at 2 p.m. this afternoon.

Right now futures are slightly at -- slightly elevated before that.

The 10 year yield, moving up a little bit.

The euro dollar is weaker, 1.36

This text has been automatically generated. It may not be 100% accurate.


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