Burberry (LON:BRBY) has inked a partnership deal with tech platform Farfetch, the FTSE 100 company has said. The move comes as the luxury goods retailer looks to boost its e-commerce presence.
Burberry’s share price has been little changed in today’s session, having inched 0.16 percent higher to 1,545.50p as of 13:24 GMT. The shares are marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.29 percent higher at 7,234.84 points. The group’s shares have lost nearly six percent of their value over the past year, as compared with a less than one-percent fall in the Footsie.
Burberry partners up with Farfetch
Burberry announced in a statement today that it had agreed a partnership with Farfetch. The luxury goods retailer explained that technology developed by the company has been integrated to the platform’s operating system, allowing the brand’s entire global inventory to be available through an e-commerce platform. The integration is expected to give Burberry’s brand access to over 150 countries.
Burberry and Farfetch will also launch an around-the-clock London delivery service, dubbed ‘Show to Door,’ for 24 hours after the luxury goods retailer’s fashion show this Saturday.
The deal comes as Burberry’s new chief executive looks to shift the company further upmarket.
Analysts on luxury goods retailer
Kepler Capital Markets, which sees Burberry as a ‘hold,’ lowered its price target on the shares from 1,710p to 1,640p last week. According to MarketBeat, the blue-chip luxury goods retailer currently has a consensus ‘hold’ rating and an average price target of 1,690.56p.
Earlier this month, Jefferies kicked off coverage of the stock with a ‘hold’ stance, noting that while the retailer may be ‘unique,’ its rebranding phase is likely to take time.