Research and Markets - Burberry Market Value Rises to USD 9.1 Billion Amid Takeover Rumours

08 Mar, 2016, 13:02 ET from Research and Markets

DUBLIN, March 8, 2016 /PRNewswire/ --

The global personal luxury goods market is expected to grow at a CAGR of 8.45% by 2019, according to a report available from Research and Markets. The report states that global personal luxury brands are aggressively investing in new product launches and expanded retails stores into different geographies, but these businesses face a major risk with respect to maintaining brand desirability. This suggestion was supported today with news of Burberry Group Plc's potential takeover offer. Underperformance in the markets has made the fashion label an approachable target.

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A mystery investor has built up a stake of around 5% in Burberry, and the label is setting up defenses to contest any takeovers. Burberry stock has dropped by 27% in the last year, with Christmas revenue lower than that forecast. Speculation of the takeover boosted the company's market value to USD 9.1 billion this week, and had a positive effect on the stocks of rival brands such as Prada SpA, who saw a rise of up to 10% in Hong Kong. However, investors remained concerned about Burberry's brand management.

If successful, the takeover could see further increases to Burberry's market value, allowing the brand to compete against competitors and make gains. The global menswear market is estimated to be worth USD 553.6 billion by 2019, growing at a CAGR of 4.8% over the 2014-2019 period, as forecast in a market report. Brand restructuring could help Burberry re-establish their hold in this market area.

The global shoulder bags markets is predicted to grow at a CAGR of 5.53% by 2019, as forecast in an industry report, and Burberry will be keen to take advantage of this growth. Again, brand restructuring will be paramount to Burberry's advancement in this market as forecast earnings are expected to fall for a second year in a row.    

For further information on this topic, and a full list of all related documentation, please visit the Consumer and Personal section at http://www.researchandmarkets.com/rm/MNKL.

Source: http://www.bloomberg.com/news/articles/2016-03-08/burberry-surges-on-speculation-trenchcoat-maker-may-attract-bid

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