E’S no need to panic just yet. Shares in Burberry may be down 25 per cent over the past ten days alone, but the drop is put into context by the massive 900 per cent they’ve risen since their lowest point during the 2008 crisis.
And rather than retreating at the first sign of a Chinese slowdown, Burberry is expected to reaffirm its expansion plans at the results presentation this week – both in London and overseas.
Chinese shoppers flocked to London last month in the wake of fashion week (see p13) and Burberry’s latest collection was well received, with its Twitter release ensuring mass dissemination and an effortless marketing coup.
China’s GDP growth may be slowing, but the country still has a swelling middle class with disposable income to burn. Strong first half sales should inspire confidence on how they’ll spend it.