Fixing Burberry's American Discount Woes a Priority for New CEO
- U.S. revenue decline worsened in fourth quarter, company says
- Shares retreat as much as 7.6% in London, most in six months
A pedestrian passes a giant poster for Burberry, posted on the outside of their store on New Bond Street in London, U.K. on Wednesday, Feb. 29, 2012. Bank of England Deputy Governor Charles Bean yesterday cautioned lawmakers against putting too much weight on positive signs in the economy.
Photographer: Simon Dawson/BloombergBurberry Group Plc’s incoming Chief Executive Officer Marco Gobbetti faces a long list of challenges when he starts the job in July, and polishing the brand’s luxury image in the discount-driven U.S. will be right near the top.
The U.K. luxury retailer’s sales in the Americas region are falling at an accelerating pace, a company update showed on Wednesday, partly a function of moves to make the brand there more aspirational. These have included withdrawing from U.S. department stores in non-premium locations and shortening the clearance period by 10 days. At the same time, a strong dollar is encouraging wealthy Americans to take their spending abroad.