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Burberry plans to move further up market

From BBC - November 9, 2017

Luxury goods retailer Burberry is planning to close some stores and stop selling in outlets that are not sufficiently upmarket.

The new strategy was announced along with its half-year results, which showed like-for-like sales up 4% and a 24% rise in operating profits to 127m.

Burberry has been cutting costs for some time and says it cut out another 20m, giving it savings so far of 40m.

Shares in the company fell 12% following the announcement.

The brand said that it intended to focus primarily on luxury shoppers, by creating "compelling luxury leather goods and accessories".

It intends to close an unspecified number of non-luxury retail and wholesale stores, as well as refurbishing other stores.

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