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Burberry is at risk of takeover after losing a fifth of its value since the start of the year, The Telegraph has reported.
A profit warning from rival luxury brand Kering, which owns Gucci, Bottega Veneta and YSL among others, triggered a dip in Burberry shares on Wednesday (24 April). The 2.5% drop means that the brand is now worth £4bn.
Abrdn investment manager Sasha Kachanova told The Telegraph: “Burberry remains a potential takeover target, particularly at its current valuation.
“As the sole British brand of scale operating independently – a rarity in the luxury industry – it boasts a rich heritage and the opportunity to enhance its iconic product lines and accessories.”
Abrdn is one of Burberry’s top 20 shareholders.
A survey conducted by Bloomberg last year revealed that Burberry was among the top companies facing a potential takeover, alongside Hugo Boss and Richemont.
In January the brand lowered its full-year guidance amid a slowdown in luxury demand and revenue falling 7% to £706m.
Jonathan Akeroyd, chief executive officer, said: “We experienced a further deceleration in our key December trading period and we now expect our full year results to be below our previous guidance. We remain confident in our strategy to realise Burberry’s potential and we are committed to achieving our £4bn revenue ambition.”
