Burberry to cut costs by 10 percent
Luxury clothing retailer Burberry are set to overhaul operations in order to stay above competition in an ongoing tough market.
The group has announced plans which aim to cut operating costs by 10 percent, it said on Wednesday, and deliver savings of at least £100 million by 2019. Burberry reported adjusted pretax profit of £421 million for the period to the end of March, and is expected to come in at the bottom of market forecasts in March 2017.
CEO and chief designer Christoper Bailey commented: “While we expect the challenging environment for the luxury sector to continue in the near term, we are firmly committed to making the changes needed to driver Burberry’s outperformance.”
Suzuki shares plunge on emissions scandal
Suzuki shares have plummeted 9 percent, after reports that it had become the latest carmaker to become embroiled in an emissions scandal.
Japanese media reports reported that Suzuki had found a problem with its testing method, with chairman Osamu Suzuki due to present to Japan’s transport ministry later today.
Shares are currently down 9.37 percent at 2613.00 (0820GMT).
Japanese economy beats recession
The Japanese economy expanded faster than expected in the first quarter of 2016, beating analysts expectations and fuelling speculation that the country’s economic measures may be starting to take effect.
The economy grew at an annual rate of 1.7 percent between January and March, after slipping back in the final quarter of 2015.
18/05/2016
