Luxury Protected From Competitive Threats: Perry

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Nov. 14 (Bloomberg) -- Allegra Perry, managing director of luxury goods at Cantor Fitzgerald, examines results from Burberry and Tod’s and the impact of online and digital sales and marketing to the luxury industry. She speaks on Bloomberg Television’s “On The Move.”

Thank you for joining us.

Yes.

The third quarter had disappointing figures across the board.

There is organic trends.

We have a lot more acceleration and we are elevating brands to get slower growth.

This is a good strategy for the longer-term benefit of the band.

-- brand.

How much of that will continue into the fourth quarter next year?

The creeping headwinds of transitional impacts.

These things have led to a slowdown in a downgrade across the group.

They will come in weaker, as a result of that.

Is doing quite well and they are targeting the younger markets.

We have the low end of the spectrum.

They are trying to attract the younger crowd.

Does that make a difference?

Do you like stock?

It is interesting.

The sector is slow to embrace this channel.

Burberry has broken a lot of ground and become avant-garde.

They have changed the industry.

Both are very powerful market tools.

This will become more important in the mix and it is relatively small.

I think brands are starting to change their attitude.

They are targeting launches for the brand.

They are opening department stores in the united states.

The internet remains small for sales.

With burberry, they made it clear points that apple -- off- line traffic is weak and online traffic is strong.

There is comfort to be taken in that.

In the brand, they have a website and a degree of control.

I think that is the reason why the internet was disregarded.

That is changing.

That is not going to change anytime soon.

They had the repositioning.

You reposition yourself.

You talk about todd's. when we look at other companies, what do we look to buy?

We saw a slowdown organically.

When they get 30-40% of sales from italy, they have had enough of cuts.

The account rationalization has weighed heavily on this company.

It is difficult.

The shares have been very strong.

They have been the best performers in the year to date.

That is reflected.

That is on the back of the acquisition.

It was unwarranted, in the case of todd's. that stock looks a little bit stretched.

There is the risk to the store with the exposure to italy.

Overall, it looks in line with the historical average.

There is a prospect of higher profitability.

The sector continues to be projected from competitive threats.

They have competitive advantages.

Over time, i think they are well protected and will have sales growth and expansion in margins.

To me, the valuation looks undemanding.

That said, they will have the fourth quarter.

What are your favorite companies?

That has to do with luxury brands.

That is right.

They have impacts.

They have the boom of profit.

It has been normalized and what they were saying.

All of these things are well known.

That is coming with me discontinued line.

That is particularly luxury.

Despite slower growth in the third quarter, elevating.

She has been successful so far.

I think it will turn out to be very profitable growth.

In the long term -- stay with on the move.

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

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