Burberry gets Weisz

British actress Rachel Weisz appears in a new medium with a starring role in the ads for the new Burberry London scent. The ads were revealed on Wednesday morning. “We were looking for a real British beauty,” creative director Christopher Bailey told Vogue. “Someone with true elegance and intellect but approachable and real at the same time. Rachel really has this sophistication and natural beauty and this incredible charisma that we are looking for.”

Weisz, who won the Gold Globe for Best Supporting Actress for The Constant Gardener on Monday, was photographed together with fellow actor Ioan Gruffudd by celebrity photographer Mario Testino.

www.burberry.com
18 January

Mixed messages from Burberry

Luxury goods group Burberry reported an 11 percent underlying sales rise in its retail division for the third quarter, while dismissing a 21 percent drop in underlying wholesale revenues. The group, which recently demerged from former parent company GUS, said that the third quarter was relatively immaterial, with the slide reflecting the move of some markets from wholesale to retail. Finance director Stacey Cartwright, however, admitted that there had been a lower rate of reordering in the US , and it was unlikely that these US clients were to increase their orders soon. “We will plan more conservatively next time,” she told the FT.

Meanwhile the retail division – which accounts for 68 percent of total sales - saw underlying sales rise 11 percent, and 21 percent on a reported basis to £115 million. About 5 percent of the rise can be attributed to the acquisition of 12 stores in Taiwan . Total group sales rose 4.3 percent to £168 million in the third quarter ended 31 December 2005 or 1 percent excluding the acquisition of the business in Taiwan and the shift in operations in Spain from wholesale to retail. New store openings in the UK and Continental Europe also helped stimulate the business.

"The favourable initial response to early spring deliveries across all categories provides a good start to Burberry's 150th year," Rosemarie Bravo, Burberry's outgoing chief executive, said in a statement on Wednesday. Licensing revenues remained flat at £18 million, compared with the same period last year. Japan saw a slight increase in licensing revenue thanks to royalty rate increases. Global product licenses for fragrance and watches also performed according to expectations. Cartwright said that the US would remain Burberry's main focus in the coming fiscal year, and said that more stores openings would take place.

www.burberry.com
12 January 2006

Burberry bags good for profit

Luxury goods group Burberry last week reported sales rose 3pc in the first half of the year boosted by demand for its handbags and catwalk collection Prorsum.
Rose Marie Bravo, Burberry chief executive, said: “With cold weather arriving and the holidays approaching, we enter our most important time of year with cautious optimism."

The company also said Brian Blake, chief operating officer and a member of the board, had resigned "for family reasons". Stacey Cartwright, chief financial officer, said: "He'll be available to us until the end of the year but has resigned with immediate effect."
She said Mr Blake would not be replaced immediately, adding: "We'll take our time and just review what the right structure might be."

Ms Bravo is stepping down as chief executive in July next year, to be replaced by Angela Ahrendts, and will become vice chairman of the group.
Underlying sales rose 3pc to £355m, Burberry said, though wholesale revenues declined by 1pc. The company, which is 65pc owned by retail group GUS, said its expansion was on track with new store openings and the acquisition of Taiwan distributors in the first half.

GUS is expected to unveil details of the proposed demerger of Burberry when it reports first half results on Thursday.
Burberry said pre-tax profits slipped to £78.1m in the first half from £79.4m the year before, from the cost of its Project Atlas restructuring programme. Underlying operating profits rose 2pc to £78.8m, Burberry said.

Ms Cartwright said: "Prorsum saw outstanding gains particularly in accessories. Womenswear was impacted by a soft spring season while menswear grew strongly."

She added: “We are very excited about our new Prorsum range of handbags which have gone down extremely well."
Despite the dip in profits, the interim dividend is being lifted 25pc to 2.5p, payable on February 2. The shares fell 1½ to 394p in early trading.

Bailey wins top designer award

Burberry creative director Christopher Bailey won the Designer of the Year Award at last week's British Fashion Awards at the V&A Museum in London. Prorsum, the Burberry mainline, has been one of the season's most heralded brands and Kate Moss is reportedly back on the campaign.
Womenswear designer Doru Olowu was awarded Best New Designer and Comme des Garcons' Dover Street Market store in central London won shop of the Year.

Roland Mouret was names Red Carpet Designer and Kilgour's Carlo Brandilli as best Menswear Designer.

Burberry revenue up 3 per cent

Burberry has reported it performed solidly in the first half of the financial year.
Total revenues increased 3% on an underlying basis to £355 million. Retail revenues increased 9% underlying whilst wholesale revenues declined 1% underlying. Licensing revenue increased 3% underlying.The UK market continued to be soft across both retail and wholesale channels.

Revenue in Non-Japan Asia increased 9% on an underlying basis during the half. In Greater China (Hong Kong and mainland China),growth across the retail and wholesale channels continued to be fuelled by demand from mainland consumers. Sales volumes in Japan experienced a small decline as the result of a soft apparel environment.

Sales to emerging markets increased in the first half. In conjunction with local partners, the Group opened franchised stores in Istanbul, Warsaw ,Sao Paolo, Jeddah and Riyadh.

Kate Moss still the face of Burberry

Kate Moss is set to work with Burberry again, even though the fashion house dropped the British supermodel from its advertising campaign in the wake of the cocaine scandal.

In September, Burberry decided it was "inappropriate" to be directly associated with Moss after British newspaper the Daily Mirror published damning photographs of the 31-year-old in a London recording studio.
But Burberry's creative director Christopher Bailey has backtracked on the company's earlier stance, insisting it was never his intention to turn his back on Moss.

He says: "There has been so much nonsense in the press about Burberry dropping Kate. Is Kate still part of our family? Absolutely.”
"Yes, she has some issues that she probably needs to resolve, but don't we all? We are certainly not going to say, because of one incident, that she has nothing to do with us."

Burberry worries investors

Underlying sales at luxury goods company Burberry frightened investors on Wednesday, causing shares to drop 7.1 percent. Worries over sales overshadowed relief at finding a replacement for chief executive Rose Marie Bravo, who will become vice chairman when she relinquishes her role in June 2006. Angela Ahrendts will replace her.

The company said earnings before interest and tax would be at the bottom end of the range of “the mid to low £160 millions”.

Wholesale sales, which account for just over half of total turnover, fell 3 percent to £191 million in the first half ended 30 September, as clients reduced their orders due to smaller demand for the spring/summer range. The company said underlying wholesale sales would continue to fall in the second half.

Total sales rose 2 percent to £355 million, compared with an 8 percent rise in the same period last year.

Burberry in legal action against ferret check

Ever mindful of its image, British luxury goods firm Burberry has threatened legal action against a company making garments in its trademark check pattern — for ferrets.In what must count as one of the more unusual trademark disputes of recent years, Burberry's lawyers have sent letters to Ferret World, the country's only outlet for clothes made especially for the rodents, a popular pet.

According to Wednesday's edition of the Daily Telegraph, the trouble began when the shop in Dudley, central England, advertised a check-patterned fur-lined ferret cap and cape ensemble "in the famous Burberry design".Owner Simon Bishop said he was shocked to get a letter from Burberry saying he had violated its intellectual property rights, and agreed to remove the mention of the company's name from his shop's website.But Burberry also demanded he send them a sample of the material used to make the £6.99 ($12.20) outfits — claimed to give your ferret "that out of town look" — hand over the names of all purchasers and promise never to sell anything similar again."Burberry should get a life," Bishop told the newspaper, saying he was still being threatened with legal action even though his material was a standard tartan, not the Burberry check."As far as I can see, their trademark refers to jackets and headwear for humans, and dog coats. How a two-inch cap for a ferret fits into that is anyone's guess," he added.

Burberry became famous for its invention of the gabardine waterproof raincoat and for providing kit to officers in the British armed forces during World War I.In recent years it has revitalised its image and become a leading manufacturer of luxury branded clothing and other goods.However, in Britain its check pattern caps and scarves have been adopted by some young football hooligans as a sort of uniform, hitting the brand's cachet.A spokesperson for Burberry said the firm had no plans for a line of ferret accessories, but "that's not to say there won't be".

13 October 2005

Burberry appoints new CEO

A new Burberry chief has been named to replace Rose-Marie Bravo, and as it happens the new CEO is also American. Angela Ahrendts, currently the executive vice president of Liz Claiborne, is to take over the post at the British fashion and luxury goods firm in July next year, the Company announced. Ahrendts, 45, will join London-based Burberry as executive director on Jan. 9 and work alongside Bravo, who will move to the newly-created role of vice-chairman. Bravo, 54, said she planned to move back home to Long Island, N.Y., but would be working `at least'' 12 days a month for Burberry.'

Bravo's departure will come after Burberry is fully demerged from Great Universal Stores, which owns 66 percent of the company. She engineered a turnaround at Burberry, increasing the company's market share tenfold since her arrival in 1997. "Rose Marie and I agree that the time is now right for her role to transition to that of vice chairman," John Peace, Burberry's chairman, said in a statement. "The appointment of Angela Ahrendts brings diverse industry experience, strong leadership skills, strategic vision and proven brand management."

11 October 2005

Bravo quits Burberry

Rose Marie Bravo, chief executive of British luxury brand Burberry, has announced her departure from the company she turned around. Bravo plans to leave Burberry once the brand has demerged from its majority shareholder GUS. Bravo plans to relinquish her position when her contract is due for renewal next July. The FT reports that she will receive a pay-out of 2.5 million Burberry shares valued at £10.6 million. The amount is part of a deferred bonus that was agreed upon at the time of Burberry's partial IPO in 2002.

In December, the British retail and financial services company group GUS will demerge 66 percent of its stake in the brand and assign the shares to GUS shareholders, according to the proportion of their holdings.

For eight years, Bravo transformed the dusty image of the small label Burberry into a world-renowned luxury brand worn by celebrities and royalty alike. With ad campaigns featuring the likes of Stella Tennant and Kate Moss, the brand achieved immediate recognition and association with some of the trendiest people in the world. Since Bravo joined the company, profits soared more than five-fold to £164 million during the seven years ended March 2005. It is believed that Bravo will continue at the company in a different capacity, perhaps as life president.

Chief executive of GUS and chairman of Burberry, John Peace and Bravo are thought to be discussing possible successors. One of the candidates is Brian Blake, the COO who joined Burberry last year. The changes will be outlined in an information document that will be released to shareholders before the £1.4 billion demerger. Peace is also discussing alternatives for GUS shareholders who may not want shares in Burberry. In a recent interview with the FT he said: “We will try to offer some flexibility.”

www.burberry.com
6 October 2005

Burberry signs eyewear licensing deal

Burberry Group and Luxottica Group S.p.A. announced today a 10-year licence agreement for the design, production and worldwide distribution of prescription frames and sunglasses under the Burberry name. The agreement will begin on January 1, 2006.

Brian E. Blake, President and Chief Operating Officer of Burberry Group plc commented: "Burberry looks forward to working with Luxottica in this new global partnership. Among Luxottica's many strengths, its proprietary store network in key markets and targeted growth geographies are very well aligned with Burberry's expansion strategies. Together we will endeavour to realise the exciting opportunities for the Burberry brand in the eyewear category."

The first Burberry eyewear collections under the agreement will be presented in October 2006. The two companies expect that the collections have the potential to generate wholesale sales in excess of euro 50 million annually within two to three years of launch. Luxottica Group is a global leader in eyewear, with nearly 5,500 optical and sun retail stores mainly in North America and Asia-Pacific and a well- balanced portfolio that comprises leading premium house and licensed brands, including Ray-Ban, the best selling sun and prescription eyewear brand in the world.

Among others, the Group's brand portfolio includes house brands Vogue, Persol, Arnette and REVO and license brands Bvlgari, Chanel, Dolce & Gabbana, Donna Karan, Prada and Versace. Shares in Burberry have dropped 5 per cent since the announcement of Rose-Marie Bravo's departure next year.

Burberry for charity

You no longer need to search for far-fetched justifications for buying designer clothes. Burberry creative director Christopher Bailey has given the perfect one by promising that 30 percent of the £995 crumpled leather trench coat will go to Breakthrough Breast Cancer in the UK .

The coat, modelled by Kate Moss in a campagne photographed by Mario Testin, is available in selected Burberry stores. Also part of the special edition creations are a striped pom pom cashmere and wool scarf for £125.

www.burberry.com
11 August 2005

Burberry Chief Cashes 8m of Stocks

Burberry CEO Rose Marie Bravo, has cashed in stock options this week worth 8.2 million pounds, according to the company. Bravo, who is paid in dollars, received the options as part of a bonus plan when the company was listed on the London Stock Exchange in 2002, a Burberry spokeswoman said. She still holds 2.5 million Burberry shares, worth almost 11 million pounds.

Burberry said in a statement that Bravo had chosen to take advantage of a new co-investment plan for senior management and company directors that is partly intended as an incentive to keep executives. Bravo agreed to invest $1.3 million, her bonus last year, buying shares in the co-investment plan. The company will match that investment up to 1.6 times the initial sum. For example, for every 100 shares an investor would receive 160.

The plan does not vest for another three years, which means that Bravo would have to remain at Burberry for at least that period to get the full benefit. That might dampen speculation that Bravo would leave Burberry and return to the U.S. - possibly as a successor to Paul Charron, chairman and ceo of Liz Claiborne Inc., whose contract expires on Dec. 31, 2006. Bravo has renewed her contract until June 2006, after which she will be on a 12-month contract.

Bravo has increased Burberry's market share tenfold since arriving eight years ago. Burberry, which reported a 9.6 percent sales boost to 113.7 million pounds, in the first quarter ended June 30, will open its first store in Turkey at the end of August.

www.burberry.com
20 July 2005

Burberry Q1 revenues up

British fashion house Burberry has enjoyed a successful first quarter ended 30 June, with revenues up 9 per cent.
Chief Executive Rose Marie Bravo commented on the results in a statement: "Burberry has had a successful first quarter. We largely completed the seasonal transition of our stores and are encouraged by the initial consumer response to autumn/winter merchandise. At the same time, Burberry continued to strengthen the brand's presence in Asia by finalising terms for the acquisition of our distributors in Taiwan."

Bravo, hired in 1997 from Macy's and Saks Fifth Avenue, is responsible for reviving the old-fashion brand and giving it a new, comtemporary image. The classic camel, red and black check suddenly featured on bikinis and inside pink raincoats, spicing up its musty Victorian image to no end.

Retail sales, which account for approximately 53 per cent of Burberry's first quarter revenues, climbed 9 per cent. Bravo said the hike in sales was due to "contributions from newly opened and refurbished stores and marginal gains at existing stores." Year-on-year average retail selling space increased by about 8 per cent in the first quarter. The company said it remains on schedule to increase the retail selling space this year by about 8 per cent this fiscal year.

Retail sale were especially strong in the US, Hong Kong and Southeast Asia and Continental Europe, while the UK remained soft. Sales in Korea remained volatile due to the difficult retail climate, which led to a small decline in the quarter.

Meanwhile wholesale revenues increased 5 per cent underlying. Not including the effect of the Taiwan Acquisition, the company expects first half wholesale sales to remain broadly flat relative to the previous year. Licensing revenues increased 26 per cent on an underlying basis, 28 per cent reported. Burberry says it continues to anticipate moderate licensing revenue growth for the full fiscal year.

www.burberry.com
13 July 2005

Burberry reigns in Milan

Burberry's menswear show has been heralded the best of Milan Fashion Week. Christopher Bailey took homage to 60s London - an era of inspiration for many designers - and showed a collection mixing military styling, youthful silhouettes and aristocratic undertones. The essence of what Burberry is was never lost in overdesign. Bailey's clever tailoring was spot on as to what is current.

Prada's sobriety was no surprise after Miuccia toned down the collection for Autumn/Winter. Menswear was back to Prada basics of skinny trousers and well-cut suits, techno sheen jackets and the famous logo triangle.

Donatella Versace toned down the collection, focussing around black and white hues accented by bold colour, in shirting, polos, and soft jackets worn with tailored trousers. The finale of tropical swimshorts and Miami Vice beachwear showed the House still had the pizzaz of fore.

www.burberry.com
28 June 2005

Earning power

Chief Executive of Burberry, Rose Marie Bravo, earned just over GBP 8 million in 2004. The amount is made up of her stock options, salary, bonus, benefits and allowances. Her bonus amounted to GBP 722,458 in 2004, which was less than GBP 860,149 the year before. According to WWD, this is due to a sales growth rate slowdown.

www.burberry.com
20 June 2005

Burberry Reports Profits, With Caution Ahead

Burberry has reported profits, even as it forecast continuing growth with a sustained caution. Profits for the fiscal year ending March 31 rose 18.2 percent to 109.9 million pounds, from 93 million pounds, thanks to drum-tight cost controls, pricing and sourcing gains and fewer markdowns.

Sales, as reported last month, rose 5.9 percent to $1.32 billion, or 715.5 million pounds, from $1.14 billion, or 675.8 million pounds, driven in part by the success of Prorsum, Burberry's high-end collection that it shows on the Milan runway. Currency conversions were made at average exchange rates for the respective periods.

In a statement Tuesday, the company dubbed Prorsum the "highlight" of the year in the Burberry women's business, which generates about 34 percent of overall revenue. However, Burberry was cautious about the current fiscal year, which began on April 1. The statement said consumer response to the spring collections was "muted" in certain markets, and first-half wholesale sales, including orders for the fall 2005 season, were broadly flat against last year.

Industry sources said those markets showing a muted response are mainly the U.S., the U.K. and Spain, among the company's three largest markets. Those countries were already slowing down in growth terms last year. Tuesday's statement said sales in Europe - Burberry's biggest market - rose 2.8 percent, while sales in North America rose 2.2 percent. By contrast, sales in Asia Pacific grew by 14.8 percent. The statement added that Burberry has begun a 250 million pound, share repurchase program with 58 million pounds, completed as of March 31.

www.burberry.com
25 March 2005

Burberry sells, despite high street slump

Upmarket clothing retailer Burberry will provide a bright spot amid the gloom of Britain's retail sector when it reports an upbeat performance this week. Some of its customers - affectionately called chavs - have continued to open their checked wallets through the consumer downturn even as the peaked cap and hoodie-wearing customers are being banned from malls up and down the country.

The rest of the British high street, however, have been badly affected by the downturn in trading. Analysts have warned that the worst is yet to come.

www.burberry.com
22 May 2005

Burberry launches golfwear in Korea

Korea, a test bed for the latest IT products and cosmetics, has now become an experimental ground for fashion. Burberry Golf launched its first shop in the world at Lotte Department Store's downtown store last month to be followed with a second shop in Jamsil, southern Seoul.

Whereas in other countries golf-wear is sold in pro shops and resorts, in Korea it is sold in department stores," said Jamie Powell, Burberry Golf brand manager, at the official launch ceremony held at the British ambassador's residence on Monday. The brand will introduce four seasonal collections each year, and it opened in Korea with the summer collection for men and women featuring thistle print and oversized checks.

Burberry Golf encompasses a wide range of products from shoes to polo shirts to specially commissioned golf clubs, aiming to be more than a lifestyle brand. "We are a technical brand," said Powell, explaining that while the majority of Burberry Golf products are made of natural fabric, the clothes incorporate features to ensure that they are breathable, hold their shape and offer UV protection. "Golf-wear is a new emerging market for Burberry. We are in the process of discovering who our customer is," said Powell.

www.burberry.com
20 April 2005

Burberry Forecasts Growth

Sales at Burberry were flat during the second half, the firm said today, but it forecast full-year profit growth of at least 15 per cent. The firm, which sells its products through its own stores and other retailers, said total sales in the first six months of the year rose 2 per cent to £368 million.

Licensing of the brand is driving sales growth at Burberry, with revenue from this area up 8 per cent to £39 million, helped by strong performances from its fragrances, said the company. Last week it won three awards at the Annual Fragrance Foundation in New York.

However in other areas sales were weak. Retail sales were driven mostly by new stores, with average net selling space up by 8 per cent on the prior year. The wholesale division, accounting for around half its turnover, reported 5 per cent growth after stripping out the currency impact, thanks to the Asian and Continental markets.

The company warned that in the first half of the current financial year wholesale sales will be "broadly flat relative to the previous year." It also forecast that licensing revenues would grow more moderately in 2005-6 than in the second half of 2004-5. However it plans to increase its average net selling space by eight per cent in the coming year through the addition of stores and concessions, predominantly in the United States. It has forecast a pre-tax profit of at least £162m for the full year compared with £141.2m last year.

Burberry is due to release its full-year earnings on May 24.

14 April 2005

Christopher Bailey Updates Burberry Check

British fashion house Burberry is so much more than just a check these days thanks to the vision of its creative director Christopher Bailey. Burberry Prorsum, which is Bailey's directional and fashion collection for the company, has been gaining cachet and notoriety for several seasons, and his Autumn / Winter 05 collection was hailed as one of the top Milan shows.

Born in 1971 in Yorkshire, England, Bailey graduated from the Royal College of Art in London, and has worked for Donna Karan and Gucci, joining the House in May 2001.

Bailey has stated on many occasions that he loves the brand and is proud of it and constantly thinking about how he can blend his taste level to Burberry's roots. In his latest collection Bailey introduced a more casual look, adding Bohemian flare to the design house's British heritage.

Balancing the company's tradition with what is modern is a key element in the strength of the Burberry brand. Burberry was founded in 1856 when 21 year old Thomas Burberry, a former apprentice to a country draper, opened an outfitters shop in Bashingstoke, Hampshire, England. The dawn of the company's re-emergence as a fashion brand was in 2000 when it became an icon of British style. The Kate Moss fronted campaign had fashionastis world-wide sporting the new mac, and it was no coincidence the British Fashion Council honoured Burberry in both its Classic and Contemporary design categories two years in a row. The new flagship on Bond Street was opened later that year and has proven to be a catalyst for stores around the globe.

Now, a few fragrances later, a revamped accessories line due out this Autumn, and domination in markets such as Russia and the Far East have seen the company grow to a leader in the fashion sector, whilst never steering too far from its iconic past.

www.burberry.com
5 April 2005

Gucci director defects to Burberry

Gucci Group's Pascal Perrier is Burberry-bound. Currently Gucci Group's director of licensing and business development, Perrier is expected to join the British fashion firm in April, a Burberry spokeswoman confirmed on Thursday.

Previously, Perrier was chief executive officer at Balenciaga. He has also worked at Yves Saint Laurent, Celine and Shiseido. At Burberry, he succeeds Marcella Cacci, who last month was named president of Burberry Fragrances at Inter Parfums.

www.burberry.com
4 March 2005

Burberry scores again

In one of the highlights of Milan Fashion Week, Christopher Bailey turned out a sweet, energetic collection of loose-fitting 1970s-style floral dresses to the knee, pompom scarves in schoolgirl stripes and demure pleated skirts in the label's trademark plaids.

For evening, a pink metallic belted dress with flared sleeves and a chunky necklace seemed perfect for an upscale dinner party in London. Must-have Burberry accessories for next winter include driving gloves in slate blue or lilac, and a small circular grey and red plaid bag slung over the shoulder.

www.burberry.com
23 February 2008

New President for Burberry fragrances

French beauty company Inter Parfums SA has named Marcella Cacci as president of Burberry Fragrances. Its new Burberry-dedicated operating division was created after the license-renewal agreement signed with the fashion house in October.

Cacci will be responsible for the global strategic direction, management and operational control of Burberry Fragrances. She will bring to Inter Parfums her experience gained during her five-year stint at the Burberry Group, serving most recently as senior vice president of global licensing.

Inter Parfums SA's Burberry fragrance activity generated €118.8m (+30%), representing over 75% of the company's total 2004 sales (€157.4m). Cacci intends "to take the brand to the next phase of growth". In addition to fragrances, these future developments could include Burberry skin- and personal care, according to the license agreement.

www.burberry.com
9 February 2005

Burberry To Expand Footwear

Burberry is planning to expand its footwear business rapidly next year as the group struggles against a decline in sales at its retail outlets. The company blamed a weak trading environment and a lack of high-spending US tourists for poor sales but admitted that its link to the "chav" trend had not helped.

Shares fell 121/4p to 4051/2p as analysts said that retail and wholesale sales were slightly lower than anticipated. However, a 14 per cent rise in sales of perfume and other licensed merchandise in the third quarter helped to lift total sales to in line with expectations.

Burberry wants to increase wholesale sales next year by building its footwear range, which is sold mainly through the brand's stores, into a business worth about a quarter of total sales for accessories. The company will launch new ranges of footwear in spring 2006. The company reported a 6 per cent rise in total sales, excluding the impact of currency changes, and said that it expected to meet analysts' profit forecasts for the year.

www.burberry.com
13 January 2005

Burberry Moves Into Profit

British brand Mulberry has reported a first half profit for the first time since its AIM flotation in 1996, seeing the benefits of a focus on international growth.
In the six months to September 30, Mulberry reported a profit of £17,000, compared to a loss of £615,000 a year earlier. The group, which operates a relatively small number of stores in the UK and abroad, upmarket concessions in department stores including Harrods, Liberty and Harvey Nichols, as well as wholesaling the brand, said total sales were flat at £12.1m.

An increased focus on accessories, which now account for over 80 per cent of group sales, was balanced by rationalisation of the men's and women's wear business and the impact of a number of shop closures. The first half saw the launch of Mulberry in the USA, as well as distribution agreements in Japan and the rest of Asia. Mulberry said that with strong and experienced partners in these key international markets, the next task is to build "significant and resilient long term business" in each territory.

Like-for-like sales in UK full price shops grew by 7 per cent over the first half, with a new shop opened in September in Notting Hill in London, and a deal to open in Heathrow Terminal 1 in the spring. Autumn/winter 2004 wholesale orders grew by 9 per cent, with the recently-launched Bayswater and Roxanne bag ranges driving what Godfrey Davis, chairman and chief executive, called the "transformation of Mulberry into a must-have fashionable brand attracting new younger customers".

Mulberry said like-for-like sales in full price shops for the nine weeks to November 27 are up 13 per cent. Davis said: "Current indications are that sales will grow in the second half of the year, subject to reasonable results in the key Christmas trading period." Full year results "are likely to exceed current market expectations".

www.burberry.com
13 December 2004

Burberry Check Sees Decline In UK Sales

According to the Sunday Telegraph, Burberry has seen a sharp decline in UK sales due to the popularity of its trademark camel check among so-called 'chavs', a pejorative term for a low-income social group obsessed with brand names, cheap jewellery and football.

Retailers who stock Burberry products say there is a growing negative association with the brand as the national obsession with chav culture has flourished.

www.burberry.com
29 November 2004

Burberry Online

Burberry is available online in a move to boost sales in America. Since its launch in September the American website has generated healthy turnover and UK customers could be buying over the internet within a year.

The luxury goods group's finance director Stacey Cartwright to the Evening Standard: 'It is very early days.' But she hints that internet shopping could soon become a massive source of revenue. It is hoped that the venture will increase the value of the brand which has soared to £1.9bn compared to just £200m when boss Rose Marie Bravo took over in 1997.

www.burberry.com
2 November 2004

Burberry Smells Success

Burberry is smelling success with a 14 per cent rise in underlying first-half sales, helped by strong international retail expansion and its new Burberry Brit men's fragrance. The sales figure was broadly in line with market expectations and, taking currency effects into account, reported sales were up 8 per cent. Underlying retail sales increased 12 per cent on new store openings in America and Korea, the company said.

Wholesale revenues, which accounted for 57 per cent of total income in the period, increased 13 per cent with good performance in the US but offset by modest growth in Europe. "We were particularly encouraged by the 31 per cent gain in our licensing channel, partially driven by the highly successful launch of Burberry Brit for men," said chief executive Rose Marie Bravo. Ms Bravo has been credited with turning around the brand and is due to stay in charge for at least another two years, the company said earlier in the year. Burberry is expected to achieve a full-year pretax profit of £160m.

www.burberry.com
13 October 2004

Burberry To Launch New Fragrance

Burberry is to launch a new fragrance, Burberry Brit Red, in October. Scented with notes of jasmine, mandarin, rose and gingerbread, it will come in the signature Burberry Brit tartan bottle, designed by Fabien Baron. Developed as a special-edition fragrance for limited distribution, Burberry Brit Red will be available in only 150 doors worldwide.

www.burberry.com
20 September 2004

Burberry Banned From Pubs

Two Leicester pubs have banned drinkers wearing several brands of designer clothing to crack down on violence. The Parody and Varsity have introduced strict clothing rules and banned brands including Stone Island, Aquascutum, Henri Lloyd and Burberry.

The pubs have teamed up with police to compile a list of clothing they believe are worn by groups of youths and football hooligans. The policy, aimed at "hard core trouble makers", was introduced on 10 August. Caroline Nodder, spokeswoman for Barracuda, the company which owns Varsity and The Parody, told the Leicester Mercury: "This is not necessarily aimed at football violence.

Pc Karen Holdridge, from the city centre's violence and disorder team, said the policy was aimed at tackling a hard core of troublemakers. She said: "Well-known football hooligans have a particular dress code. These people are recognised as coming into the city centre day in, day out and causing trouble."

A spokesman for Henri Lloyd called the ban a "ridiculous prejudice". He said: "To stereotype and prejudice customers based on their choice of clothing seems ridiculous." A Burberry spokeswoman said: "It's a very aspirational, cross-generational, cross gender brand and with regard to the Leicester issue, it's clearly a localised issue and to be honest it's actually quite insignificant in the face of the brand's global appeal."

www.burberry.com
22 August 2004

Burberry Boss One Of City's Highest Paid Women

The boss who transformed the fortunes of Burberry has cemented her position as one of the City's highest-paid women by cashing in GBP5.4 million worth of shares. Rose Marie Bravo, a 53-year-old American, was given a 1 per cent share stake plus lucrative options when Burberry's parent company GUS floated on the stock market in 2002.

Yesterday, it emerged that she has cashed in one million shares worth GBP3.79m and made GBP1.6m more from her option award. Last year, she received GBP2.1m in salary and bonus as well as enjoying other perks - including a GBP10,000 clothing allowance, chauffeur-driven car and free London apartment with maid.

www.burberry.com
5 August 2004

Bravo Stays On At Burberry

Rose Marie Bravo has extended her contract with Burberry as its chief executive to July 2006. The news comes as Burberry announces a healthy start to its new financial year, with sales up 14 per cent at constant exchange rates to GBP103m in the three months to June 30. Underlying growth was 6 per cent once exchange rates are factored in. Persuading Bravo to extend her contract is a coup for Burberry, which is majority-owned by retail group GUS. Credited with the successful expansion and development of the brand, Bravo has been linked with several other high profile posts in the fashion and retail sectors.

Burberry chairman John Peace said: "The Board is delighted that Rose Marie has extended her contract. Under her leadership Burberry has been transformed into an international luxury brand and the business has achieved great success with respect to revenues and profitability."

Across the quarter, retail sales increased by 15 per cent on an underlying basis, and 7 per cent reported, with newly opened stores boosting 'modest gains' at existing stores. Retail sales accounted for approximately 54 per cent of total revenue in the quarter. Burberry plans to open seven new stores and concessions in the current financial year. Bravo stated: "The financial year is off to a good start. In this quarter which marks Burberry's seasonal transition from spring to autumn, we achieved strong sell-through of remaining spring/summer merchandise and experienced an encouraging initial consumer response to our autumn/winter collections. "This performance is consistent with expectations for the full financial year."

www.burberry.com
20 July 2004

Burberry Chairman Under Watchdog Of Board Members

Britain's largest shareholder group is recommending that its members vote Burberry chairman John Peace off the board of the luxury goods company. The National Association of Pension Funds (NAPF), whose members manage assets worth GBP600m, is angry that Burberry has ignored best corporate governance practice and will deliver the rebuke at the company's shareholder meeting on 20 July.

The association has written to its members saying that Mr Peace, who is also on Burberry's remuneration committee, is not independent as he is also chief executive of GUS, the company that owns Argos. GUS is also the controlling shareholder of Burberry. "This is not in line with the New Combined Code and, while we understand the company's view, it is not in line with best practice," the association says in a report to its members.

Burberry will also feel the wrath of the NAPF over its remuneration report. The association is recommending that its members vote against approving the report because of a new executive share scheme. Burberry wants to give long-standing executives two shares for every new share they purchase in the company. The association believes that this incentive plan should have been put to a specific shareholder vote. It is also concerned that the plan is not linked to any new performance targets.

A Burberry spokeswoman said that, on both points, the company was acting in the best interests of shareholders. "John is a first-class chairman and under his stewardship the company has shown that it can attract and retain top talent as well as deliver a strong financial performance." This is the second time that Burberry has had a run-in with the association. At last year's annual general meeting, the shareholder group urged its members to vote against the company's "extraordinary" executive pay arrangements.

www.burberry.com
13 July 2004

Bravo Banks With Burberry

The cheque's not bounced at Burberry, according to the pay-packet received by the group's chief executive Rose Marie Bravo. Bravo, who is one of Britain's best-paid women, received a GBP2.1m salary last year. Perhaps a modest salary for a CEO, it hasn't yet filled the pockets of her Burberry coat. Bravo's real wealth lies in the GBP24m in shares and long-term options since turning Burberry into a global renowned luxury brand.

www.burberry.com
21 June 2004

Growth Continues At Burberry

Burberry, majority owned by GUS, have reported retail sales are up 15 per cent on the year ending March. Wholesale sales are up by 14 per cent, and licensing revenue up 18 per cent. Burberry further stated the year saw design improvements across all its product ranges, as well as brand extension with the successful launch of the Burberry Brit fragrance. Chief executive Rose Marie Bravo said it was a year in which "the brand's transformation from a traditional rainwear manufacturer to a style and luxury leader continued at pace".

Nine new company-owned stores opened during the year, as well as new franchise stores and concession openings in China, Russia and the Middle East. Chairman John Peace said "2003/04 marks another successful year for Burberry. The strength of the business in the context of this year's challenging trading environment highlights the vibrancy of the Burberry brand and the dedication and talents of its management team."

Bravo said: "This has been a terrific year for Burberry. The group achieved 28 per cent EPS growth on a 14 per cent revenue gain, backed by double digit growth in each of our businesses. "With a favourable response to date to our autumn/winter 2004 merchandise, we look ahead to the current financial year with confidence." Burberry expects to boost retail space by around 8 per cent in the year ahead through the addition of seven new stores and concessions as well as expansion and renovation of existing stores.

www.burberry.com
24 May 2004

Burberry Seeks Japan Boost

British fashion brand Burberry has its check on the Japanese market and is aiming to boost its sales in the world's top fashion marketplace. In an effort to boost its business in Japan, Burberry recently opened a new store in Omotesando, Tokyo, focusing on the brand's imported products, its second flagship store in the country. Other stores around Asia offer both licensed and imported products while the new stores only boasts imported merchandise.

While licensed products have been selling quite well in the Japanese market, the brand has another dimension--high-fashion products imported from Europe, such as the Burberry Prorsum and London collections. With Burberry's sales in Japan accounting for about half of its worldwide sales--turnover was about 500 million pounds (about 100 billion yen) in the year to March 2002--O'Neill said Japan was the company's "single most important market."

However, O'Neill believes the firm still lags other global fashion brands. "If you compare (our sales) with our competitors, our competitors are much larger," he said. Nevertheless, O'Neill believes the company's diversification across Asia, Europe and North America will ensure its continued growth.

"We identify two markets in the world where we see significant growth over the next several years--they are North America and Asia," he said. "These are the two markets that we are concentrating so much effort and so much investment." Apart from increasing sales in Japan, Burberry is enjoying growing business in the rest of the Asia-Pacific region thanks to its marketing strategy.

www.burberry.com
17 May 2004

Gucci Top Man Joins Burberry

Brian Blake, former executive vice-president at Gucci, left the Italian luxury goods company to join Burberry as its chief operating officer and worldwide president. Mr Blake, who replaces Mike Metcalfe, the joint chief operating officer and financial officer, who recently took the helm at Fitness First, the gym chain, and Thomas O'Neill, the former worldwide president, who leaves Burberry in July to head Harry Winston, the jeweller.

Rose-Marie Bravo said Mr Blake was joining Burberry at an "important juncture in the company's development". She added: "His extensive international experience, in-depth understanding of the luxury market and successful track record for driving performance, sales and profit brings added dimension to the proven strength of our team and our strategy."

The company declined to comment on details of Mr Blake's compensation package, but Mr O'Neill was paid a total of £1.2m last year, while Mr Metcalfe earned £960m. Mr Blake said it would be "exciting... to continue the momentum" at Burberry. He will be charged with overseeing Burberry's global wholesale, retail, licensing and manufacturing operations.

His departure from Gucci follows those of Domenico De Sole, the chief executive, Tom Ford, the creative director, and Robert Singer, the finance director. The Italian group, which also owns the Yves Saint Laurent, Stella McCartney and Alexander McQueen labels, surprised the industry last month when it turned to Unilever to select Mr De Sole's replacement. Robert Polet, who heads Unilever's ice cream arm, is joining Gucci in July.

www.burberry.com
10 May 2004

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