FT : Burberry plans to cut discounting despite hit to revenues

Burberry plans to cut discounting despite hit to revenues
Luxury retailer is determined to retain brand strength after attracting new customers in China, South Korea and US

Burberry is planning to reduce markdowns on its bags and clothes, betting that sacrificing short-term income to retain a stronger brand will help lift profits that have suffered in the wake of the pandemic.

The British luxury retailer on Thursday warned of a hit to revenues in the second half of its financial year, as it prepared to unwind discounts, despite lockdowns in Europe forcing roughly 10 per cent of its stores to shut.

“With the brand resonating and attracting new and younger consumers, we have taken the decision to reduce markdowns,” the company said. “This will be a revenue headwind [the second half of this financial year] but will serve the long-term interest of the brand.”

Burberry’s clearance sale will now feature fewer products, start later and last for a shorter duration of time.

Julie Brown, chief operating and chief financial officer, called the move an “opportunity to strengthen the brand” following strong demand from new consumers in the past few months, particularly in China, South Korea and the US.

Strong trading in the three countries helped the brand’s comparable store sales improve and return to growth in October, after sagging as much as 45 per cent in the quarter covering the spring.

But the uptick in demand failed to offset low sales throughout the pandemic, with Burberry badly hit as it relies heavily on in-store sales and international tourism. Pre-tax profits were down 62 per cent to £73m in the six months to September, compared with the same period last year. Sales dropped 31 per cent to £878m.

Investors were nevertheless reassured by the company’s announcements, which included a plan to review currently suspended dividends at the end of the financial year. Burberry’s share price, which is down more than a quarter since a peak in January, rose more than 3 per cent on Thursday morning.

Ms Brown said Burberry was now facing a triple whammy of the pandemic, Brexit and the UK government’s recent decision to scrap value added tax relief for overseas visitors.

Roughly two-thirds of the brand’s sales in the UK were made to foreign visitors, she said, adding that “tourists may now go into other European cities where they can reclaim the VAT”.

“Burberry may still pick up consumers overseas but the UK might lose the business, which is important also to hotels and restaurants,” she said.

Ms Brown added that if no Brexit deal was struck, the company was expecting to pay additional duty in the “low tens of millions”.

WWD : Jil Sander Talks Comeback, Uniqlo and the Perfect Coat

Jil Sander Talks Comeback, Uniqlo and the Perfect Coat
Clothes "ought to express the zeitgeist," the designer says.

After many years away from the fashion scene, Jil Sander is back with a new +J collection that drops Thursday at Uniqlo stores worldwide, and online.
The German designer, acclaimed for her meticulous brand of minimalism, marked a big fashion comeback in 2009 when she partnered with the Japanese retailer for a new brand of well-crafted fast fashion. The fall 2011 season was the last for +J — until now.
It’s clear Sander still has more to say, and her latest exacting silhouettes for women include a short puffer jacket with fluted sleeves, neat merino wool cardigans and multistripe shirts with band collars. Men’s looks include an oversized work jacket, a down-filled blouson and sleek chinos.


Sander left her namesake brand twice in the early Aughts, and then for good in 2013, and took a leave of absence from the fashion world. In 2017, she was the subject of a major retrospective at Frankfurt’s Museum of Applied Arts.
Here, she talks about how the crisis has affected her design approach, her beauty aspirations, and why the perfect coat is a shifting quantity.
WWD: It’s been more than a decade since your landmark collaboration with Uniqlo. What took you so long?
Jil Sander: My last show for Jil Sander was in 2013. In the last years, I kept my creativity busy by building, gardening and preparing a museum show of my work. Meanwhile, I kept in touch with Uniqlo, and now the time felt right for a restart of +J.


A look from Uniqlo’s +J collection by Jil Sander Courtesy of Uniqlo
WWD: You’ve had many returns in fashion.
J.S.: Yes, returning seems to be my karma. I wanted to react to disposable fashion, and I knew what could be done in a cooperation with Uniqlo. The buying power, logistics and global distribution network of my Japanese partners make it possible to produce high quality design at democratic prices.
WWD: Crisis affects designers in different ways: How did it change your own approach to dressing and your idea about how people might want to dress?
J.S.: Of course, the pandemic was on our minds and influenced the design. I looked for larger shapes that can shelter us, for more softness and kindness. But my general approach hasn’t changed. I tried to advance my idea of sophisticated 3-D designs that underline the personality of the wearer. So, I took care to fit the volumes in a way that defines the body. I feel that we look for smart, well-tailored pieces that give us a boost of self-assurance and prepare us for a new start.
WWD: A prominent buyer once told me that just when you think Jil Sander has designed the most beautiful navy coat, she designs an even better one.
J.S.: I continue to work on basic items like the navy coat or the white shirt and alter them according to material innovation, contemporary proportions and cuts. This ongoing redesign process is like a study of time. If you like the new version better, to me that’s the essence of modernity. Since attractive clothes are not only about quality and classic cuts, they also ought to express the zeitgeist.
A look from Uniqlo’s +J collection by Jil Sander Courtesy of Uniqlo
WWD: Is there a particular garment you enjoy designing the most? If so, which one and why?
J.S.: Maybe, I would name the Chesterfield coat. A coat is always shifting in proportions, it has lots of details I want to adjust according to a contemporary sensibility.


WWD: Yves Saint Laurent once said he wished he had invented blue jeans. If you could have invented one thing in fashion, what would it be?
J.S.: I guess, today, the light down jacket. When I saw the first light down in a hiking store 20 years ago, it struck me that this would be the new fur coat. I had been shaving furs to make them lighter, but the light down was their substitute. I do care for invention, first of all in fabrics, but also in new ways of workmanship. We had many innovative ideas in the past.
WWD: The fashion world is accelerating into digital. Do you shop much online?
J.S.: I don’t shop online.
WWD:Outside of fashion, is there anything you would like to try designing?
J.S.: I once designed the interior of a sports car, but I look at everything with a designer’s eye. And I would love to translate my experience and my idea of purity into a beauty line.
A look from Uniqlo’s +J collection by Jil Sander Courtesy of Uniqlo
WWD: Last you spoke to WWD, you had a big exhibition in Frankfurt. Any plans to do any other such project around your fashion career?
J.S.: I am working on a book project. And our exhibition may travel, once we see better times.
WWD: Your +J collection drops today: Any predictions on bestsellers, or any advice for people who might not have your expert eye about how to choose the right thing?
J.S.: The collection is quite concentrated, but well coordinated. I’d advise to buy a whole look rather than just one piece. And one should keep in mind that larger volumes don’t translate into smaller sizes, since all sizes are body-fitted for comfort.

(ZH) "Catastrophic Collisions" - NASA Warns About New 5G Satelli

"Catastrophic Collisions" - NASA Warns About New 5G Satellite Constellation

Several private companies are planning to launch large, low-Earth-orbit (LEO) satellite constellations. NASA, who generally doesn't comment on these types of developments, recently published a stark warning for AST & Science, which intends to launch a massive constellation of hundreds of large 5G satellites.
NASA engineer Samantha Fonder expressed concern about AST's 5G mega constellation of satellites in a recently penned letter to FCC's Marleen Dortch, about how the space agency worries its assets in orbit could experience a "catastrophic collision," reported Ars Technica.
"NASA submits this letter during the public comment period for the purpose of providing a better understanding of NASA's concerns with respect to its assets on-orbit, to further mitigate the risks of collisions for the mutual benefit of all involved," Fonder wrote.

Since AST's satellites are large, she noted that they could cause thousands of probable accidents every year. AST insists it's committed to resolving the issues with NASA.
Aside from the satellites' size, Fonder fears that AST's inexperience could result in a high rate of satellites failing to achieve orbit.
Fonder added, "for the completed constellation of 243 satellites, one can expect 1,500 mitigation actions per year and perhaps 15,000 planning activities. This would equate to four maneuvers and 40 active planning activities on any given day."
At the end of the letter, she requests the FCC, given the size of AST's satellites and inexperience, along with the heightened probabilities that collision could be seen as LEO has been transformed into a crowded mess of satellites and space debris, that "AST should consider alternative orbit regimes for this constellation."
Besides Fonder's warning, the European Space Agency (ESA) also warned about thousands of new satellites and dangerous space debris that have jammed up Earth's orbit.
While it becomes clear space debris is becoming a significant issue, ESA recently awarded the Swiss startup company Clearpace, a $117 million contract, to remove space debris from orbit. Though the program to remove space junk won't start until 2025.

Judging by ESA's animation above of satellites and space junk, collisions are bound to happen...

Business of Fashion : The Business of Blackfishing

The Business of Blackfishing
The July 2020 cover of Vogue Paris featuring Danish model Natasja Madsen sparked a social media uproar | Source: Vogue Paris

>>> Europe : Brokers Upgrades & Downgrades -12th of November 2020 V2(+)

>>> Up
* 24sevenoffice Scandinavia Raised to Buy at Pareto Securities (+)
* Bank of Cyprus Raised to Buy at Wood & Company
* Bechtle Raised to Hold at Commerzbank; PT 160 euros
* Bechtle Raised to Buy at Bankhaus Metzler; PT 186 euros
* Brenntag Raised to Buy at Bankhaus Metzler; PT 70 euros (+)
* Deutsche Post Raised to Buy at LBBW; PT 45 euros (+)
* EFG International Raised to Buy at Citi; PT 6.40 Swiss francs (+)
* Hapag-Lloyd Raised to Buy at HSBC; PT 69 euros
* Ericsson Raised to Buy at SocGen; PT 121 kronor
* Magseis Fairfield ASA Raised to Buy at SpareBank; PT 3 kroner
* Nexi Raised to Buy at SocGen; PT 18.60 euros
* Ryanair Raised to Outperform at Exane; PT 18 euros
* SAS Raised to Buy at HSBC; PT 1.75 kronor
* Solon Eiendom Raised to Buy at DNB Markets; PT 40 kroner
* Stroeer Raised to Overweight at JPMorgan; PT 82 euros (+)
* United Internet Raised to Neutral at Exane; PT 30 euros

>>> down
* Compass Cut to Hold at Jefferies; PT 1,400 pence
* Croda Cut to Underweight at Barclays; PT 5,650 pence
* Getlink SE Cut to Hold at HSBC; PT 14 euros
* Meggitt Cut to Neutral at Citi; PT 430 pence
* NTS Cut to Hold at Pareto Securities; PT 80 kroner (+)
* Verbund Cut to Underweight at Barclays; PT 43 euros
* Zurich Airport Cut to Hold at Bank Vontobel (+)

>>> Initiation
* AB Ignitis Grupe GDRs Rated New Overweight at Morgan Stanley
* Glanbia Rated New Buy at Oddo BHF; PT 11.50 euros
* Hoffmann Green Rated New Buy at Oddo BHF; PT 27 euros
* Logitech Rated New Overweight at Morgan Stanley
* Pantheon Resources Rated New Speculative Buy at Canaccord

>>> Call
* Compass Cut at Jefferies With Shares Assuming a Rapid Recovery
* Croda Optimism Over Pfizer Deal ‘Looks Overdone,’ Barclays Says (+)
* Evotec 3Q Results Provide an Incremental Positive, RBC Says (+)
* Meggitt Cut at Citi on Limited Upside After Vaccine News Boost (+)
* RWE Performance Encouraging, Growth is Well on Track, RBC Says (+)
* SLM Solutions PT Hiked on ‘Game Changer’ Product: Deutsche Bank
* SMA Solar 3Q a Beat on Top and Bottom Lines, Jefferies Says (+)
* Tod’s 3Q Sales Beat ‘Reassuring,’ But Jefferies Remains Cautious (+)
* Unilever PT Raised at Citi, Which Calls the Stock ‘Mispriced’ (+)
* Verbund Cut at Barclays as Stock Has ‘Overshot on Fundamentals’ (+)