Friday has left mixed reactions to Burberry´s latest developments. The British luxury powerhouse announced that the departure of Angela Ahrendts will be effective in a week time, leaving the market tilting. Timely, the retailer also announced an attractive join venture with Chinese e-tailer Alibaba.
As confirmed on Friday morning, Apple's new retail chief, Angela Ahrendts, will begin her creative duties next week, overseeing the strategic direction, expansion, and operation of Cupertino's retail and online stores. Hers will be a busy first week at new job, as Apple´s CEO Tim Cook hinted on an earnings call with analysts earlier this week.
Investors and analysts alike will be closely watching Burberry shares in the coming days, trying to guess whether Ahrendts´exit is a good or bad news for the British luxury fashion group.
In what has been coined by many in the City as an attempt to offset any potential negative impact, Burberry also announced the opening of their virtual storefront on an Alibaba group shopping site to target Chinese luxury shoppers, as reported the ‘Wall Street Journal’.
On the wake of the news, investment analysts at Berenberg Bank lifted their price objective on shares of Burberry Group plc (LON:BRBY) from 1,500 to 1,550 pence in a note issued to investors on Friday.
The firm currently has a ‘hold’ rating on the stock, with their target price would indicating a potential upside of 6.60 percent from the company’s current price. Shares at Burberry Group opened at 1,454 pence on Friday, giving the company a 6.361 billion pounds market cap.