stocks trading at 52-week lows present an interesting situation for investors. A discounted share price creates buying opportunities that can potentially propel a portfolio to new heights. But that all depends on why a stock’s trading so cheaply.
Often, being priced at the lowest point within a year can be a blaring signal of weakness. And if there are genuine problems that have compromised operations, such a bargain could likely be a trap. So when looking at ( ), which is it? A changing of the guard Burberry’s a well-known brand within the luxury fashion sector.
In fact, it’s one of the oldest in Britain, dating back to 1856. And throughout its history, the firm’s gone through periods of success as well as failure. In 2024, shareholders seem to be going through another round of the latter.
Shares are down more than 70% over the last 12 months. And apart from reaching a 52-week low, the stock also reached a 15-year low. What happened? Being a luxury fashion brand during a cost-of-living crisis isn’t easy.
And management took a risk to change the brand’s creative direction to try and spark interest from new customers. But the result was lacklustre, while simultaneously unappealing to existing Burberry customers sending the financials even further south. Needless to say, the recent strategic decisions at Burberry were a big error.
And it’s unsurprising Jonathan Akeroyd has subsequently been kicked out of the . Taking his place is Joshua Schulman, former CEO of US .
