Thinking about a pricey new scarf or something similar for Christmas? Clothing retailer Burberry (BURBY) is frantically hoping that is the case because it has a turnaround plan for its flagging business. It has some new draws in mind and the plan is good enough for investors, who sent shares surging nearly 18% in Thursday afternoon’s trading.
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Give Burberry credit; there is very little that it is not willing to try. It has a range of new products and services coming out that will, hopefully, spawn interest among the well-heeled and get them to pull out their credit cards once more. One of the biggest moves features Burberry getting away from leather products, which had been a mainstay for the last two years. Now, it is moving back to outerwear, especially its high-end trench coats.
Burberry plans to bring its scarves front and center, letting the $450 to $1,050 scarves out of drawers and into “scarf bars,” showing off the goods as publicly as possible to drive interest. Also look for surges in quilted coats as well as jackets, in both down and puffer varieties, which should prove attractive as we near winter.
New Ads, New Tech, and More
It gets better from there, as Burberry fires up some star-powered marketing campaigns, bringing in David Tennant of Doctor Who fame for its “Wrapped in Burberry” campaign. Meanwhile, Slawn and Tallulah Christie will also be part of the campaign.
In addition, Burberry is rolling out what it calls a “virtual scarf try-on experience.” It uses an augmented reality system to connect to a user’s mobile device camera, and show said user just what they look like when wearing a Burberry scarf. This is not necessarily new; platforms like this have been in use or considered for years. However, it is an excellent application of an augmented reality platform.
Is Burberry Stock a Good Buy Right Now?
Turning to Wall Street, no analysts are currently offering coverage of Burberry stock, so we turn instead to the last five days of trading. Burberry shares were actually trending downward for most of the period, in a gradual sort of way. But today’s news sent shares spiking and ultimately allowed Burberry to gain 1.9% over the last five days.
