Will PPR Acquire Burberry?

by Filipa Oliveira

In a rumour that can come to fruition in a near future, it’s being reported that the French conglomerate Pinault-Printemps-Redoute (PPR) is planning to acquire the luxury fashion label Burberry.

Burberry’s shares have nearly doubled over the past twelve months and despite an extremely difficult market environment, the company has achieved an excellent sales performance, with a 24% revenue growth in the last three months. Several analysts have suggested that the British fashion house may be a potential target for the Gucci Group owner, because it has “no major blocking shareholders”.

“We think Burberry is an attractive bid target thanks to its strong brand momentum and 100% free float” says Peter Farren, a luxury-goods analyst at the French investment firm Bryan Garnier “PPR has clearly signalled its intention to sell non-core retail assets in order to build a portfolio of luxury/ lifestyle brands, so we think Burberry’s premium is sustainable until PPR has achieved this goal”

Both companies declined to comment on the market rumours.

The Burberry Beauty line launched at Harrods on July 12th.

And because boosting sales is all about knowing what the customer wants, Burberry has recently launched its first ever make-up collection. Taking inspiration in the brand’s iconic trench coat and its natural colour palette, the range includes 96 beauty essentials for face, lips, cheeks, and eyes, ranging from around £15 for a Lip Definer to £37 for a Foundation Compact. With an initial distribution limited to 30 doors worldwide, Burberry Beauty is available exclusively at Harrods beauty counters in London and online at Harrods.com.