TWO of Britain's best-known labels have today unveiled different pricing strategies for the coming year, with Mulberry cutting prices and Burberry announcing that it may have to increase them.
Mulberry's pricing structure was reworked under recently departed CEO Bruno Guillon, to lift it above more affordable competitors - including Michael Kors - into the realm of catwalk labels like Prada and Balenciaga. The brand - which issued a second profit warning in three months today - will make the move knowing that the impact will be short-term, Reuters reports, but asserted that it is needed to assure the company's future financial strength.
Burberry, meanwhile, tempered an announcement of strong results in Asia with the warning that the strengthening pound may yet hurt sales. Burberry finance chief Carol Fairweather told The Times that there would be no "knee-jerk reactions" in terms of price changes, but that if rival retailers altered their prices, Burberry may follow - noting that unfavourable exchange rates could knock £30 million off its profits next year.
Sterling has risen around four per cent against the US dollar over the past six months.
Related Designer Fashion Review
No comments:
Post a Comment