for the Latest Fashion news
Burberry is a British luxury fashion house, manufacturing clothing and fashion accessories. Thomas Burberry founded Burberry in 1856.
Click here for the list of related news items, published by FashionUnited in the fashion news archive.
Burberry announces profit
Burberry on Wednesday announced total revenue increased 30% on an underlying basis. The brand's retail sales rose 25% driven by new and existing stores. Commenting on the trading results, Burberry CEO Angela Ahrendts stated: "The year is off to a good start. Our key strategies continue to drive strong retail performance and we are pleased that these retail-oriented initiatives are benefiting wholesale partners as well. Results for the quarter are consistent with our expectations for the full financial year."
Retail sales accounted for approximately 58% of total reported revenue in the quarter. Comparable store sales increased 9%, against a strong prior year comparison. Average selling space increased approximately 14%. During the quarter, Burberry opened four stores, in Antwerp, Bologna, Puerto Banus and Tampa. The Group opened a net six concessions, including those in Italy, Spain, Singapore and the UK, and three outlet stores.
Wholesale sales accounted for approximately 33% of total reported revenue in the quarter and increased 51% underlying. In advance of the planned 2008 headquarters relocation, Burberry completed the sale of its central London building during the quarter. Inclusive of one-time costs associated with the move, the Group expects to record a net pre-tax gain of approximately £15 million associated with the transaction in the 2007/08 financial year.
11 July 2007
Burberry launch pre-collection
Burberry has announced the introduction of the new Prorsum Spring Summer 2008 pre collection. Christopher Bailey, Burberry's creative director stated:?“The Burberry Prorsum pre collections are the indicators of the mood, look and feel for the upcoming men's and women's shows and crystallise our statement for the season across all ready-to-wear and accessories ranges. For spring/summer 2008, we have again looked to our history and saluted the contradictions between strict regimental military and more playful sport references – and in women's, the girlish romanticism that has become part of our signature.”
The pre collections include outerwear and tailoring, as well as dresses, knitwear, trousers and jersey items. Silhouettes are long and lean this season, with an emphasis on body consciousness. Layering is often used over lean silhouettes, as well as the introduction of empire waistlines and high-waisted skirts.
Known for its romantic and British quirkiness, for AW08 Burberry has chosen an edgier advertising campaign, featuring model of the moment Agyness Deyn, Lily Donaldson and Georgia Frost. Shot by Burberry regular Mario Testino, the images are more rock & roll than ever before. Reminiscent of a 70s Queen album cover, the images show a tougher and sexier side to the House.
15 June 2007
Burberry's wholesale profits rise
Burberry has released figures of its wholesale revenue, which rose 8% and sales from licensing sales rose 10%. Full year operating profit rose 2% to £157.0m while turnover increased 14% to £850.3m. Sales were boosted by new shop openings in Prague and Seville.
Commenting on the results Angela Ahrendts, Chief Executive, stated: “With a 21 per cent increase in adjusted EPS on a 15 per cent underlying revenue gain, our 150th anniversary was an outstanding year for Burberry. On the strategic front, we advanced the luxury component of the brand, accelerated retail expansion and continued to evolve the operating model. We face the current year with confidence, given the strength of our brand, effectiveness of our strategies and talent of our teams around the world.”
24 May 2007
Burberry art directs campaigns in-house
One of the industry's most iconic creative directors is no longer leading Burberry's fashion campaigns, The Daily has learned. Fabien Baron, the creative director of French Vogue, and the hip, venerable house have gone their separate ways — at least where the fashion is concerned. Baron confirmed Friday that he did not work on Burberry's Fall/Winter 2007 campaign. Their collaboration will continue, however, with the brand's line of fragrances.
“There are no hard feelings; it was all about timing,” said a spokesperson for Baron & Baron. “Burberry has been slowly doing more things in house. We knew we weren't going to work on the fall campaign earlier this year, and it was not a surprise. It's just the way it goes. Fabien and Mario are working on an upcoming fragrance campaign together.”
Post-Fabien, who has been at the helm of Burberry's fashion portfolios for nearly a decade, the campaigns will be handled in house by a team led by chief designer Christopher Bailey, who will continue working with photographer Mario Testino. Meanwhile, the responsibilities of David Lipman, whose Lipman Agency has been Burberry's media buying agency of record, have also been scaled back.
14 May 2007
Burberry sees sales growth
Burberry announced on Tuesday sales are up 19%, thanks to a focus on luxury goods retail and a concerted push further into world markets. The controversy surrounding its recent Welsh factory closure seemed to have little influence on the company's momentum. The company said it brought in £850m in the six months to 31 March, with sales in its retail outlets driving the increase. Retail sales accounted for approximately 53% of total revenue in the second half. Comparable store sales increased 12%. The Spain retail conversion contributed approximately eight percentage points of the reported gain.
In the fourth quarter, all regions achieved double-digit gains. In the US, performance was balanced between existing and new store contributions. Gains at existing stores and concessions led excellent results in Continental European markets. In their second spring season, womenswear concessions in Spain demonstrated notable progress. The UK market, continuing to benefit from the Group's increased investment during the year, produced strong gains. Momentum in Asia Pacific continued, led by Hong Kong and other Southeast Asian markets.
Enthusiastic consumer response to spring merchandise following reduced end of season sale activity in January was a consistent factor underpinning performance in the fourth quarter. Outstanding outerwear sales, driven by updated styles and balanced assortments, led gains. Luxury handbags and runway apparel continued to experience excellent demand. Investment in design and development during the year has been a key factor enabling this product progress. Burberry will release its preliminary results for the year ended 31 March 2007 on 24 May 2007.
17 April 2007
Burberry increases redundancy payoffs
Burberry has bowed to pressure and is increasing its redundancy payoffs in an effort to put to rest the clash over its decision to close its factory in Wales . The luxury fashion and accessories retailer provoked outraged responses from not only its employees and unions but also from celebrities like Sir Tom Jones and even the Prince of Wales, when it announced its plans to close its manufacturing plant in South Wales in favour of a cheaper location abroad. The dispute culminated in protests being held outside its stores in London , New York , Las Vegas , Chicago and Paris last month.
“Burberry is pleased to have reached an understanding with workers and unions – this is a good outcome for all involved,” the company said in a statement. “Our focus continues to be on finding alternative employment for staff at Treorchy and we have identified a large number of opportunities.”
GMB Union said that it does not accept the closure of the factory, although it did welcome the agreement to a “special loyalty bonus”, calling it a “significant improvement.” “ The offer on the table now amounts to a multimillion pound improvement on what was originally offered in September. We welcome Burberry's agreement - as a direct result of the campaign in which we have been proud to take part - to provide £150,000 a year for ten years for a special Trust Fund for the Rhondda ,” union officials said. GMB did, however, conclude that it would “continue to argue for (the factory's) continuation.”
5 March 2007
Demonstrations planned for Burberry
Demonstrators are planning world-wide Valentine's Day protests against the closure of Burberry's south Wales factory. The protests are planned for Burberry shops in New York, Los Angeles, Las Vegas, Boston, Houston and Paris. British workers will hold demonstrations outside London stores. Campaigners are protesting against plans to shut the Burberry factory in Treorchy at the end of March, with the loss of 300 jobs.
It follows Burberry's announcement on Friday that it is pulling sponsorship of the Bafta nominees' reception after workers planned to demonstrate at the event to be held at the Natural History Museum in London. Trade union GMB is co-ordinating the protests, with activists from sister unions across the world taking part. GMB organiser Mervyn Burnett said: "The protests will be called 'Stop Burberry Breaking Our Hearts'.
"We know America accounted for £72 million in revenue for Burberry last year. Americans aren't going to be best pleased with their plans." Protests were held at Burberry's flagship stores in New Bond Street and Regent Street last month. The campaign has attracted the backing of celebrities including Sir Alex Ferguson, Tom Jones and Emma Thompson.
5 February 2007
Burberry backs decision to close factory
Burberry has acted out at the negative press regarding closing its Welsh-based factory, staying a right to act as a global company and shift production to China , even if it requires cutting jobs. Burberry 'remains fully committed to Britain,' commercial affairs Director Michael Mahony told the Welsh Affairs Select Committee Thursday. But 'Burberry will continue to respond to the forces of globalization, evolving its business to ensure it remains a successful British business generating prosperity in Britain,' The Western Mail reported him as saying.
Britain, unlike Italy and France, is not a country that celebrates manufacturing of fine clothing and in comparison to the aforementioned countries, there is little export in the way of ready-to-wear fashion. Burberry announced in September it would close its Treorchy, Wales, factory in March, saying the plant was 'not commercially viable.'
Celebrities including Prince Charles and actress Emma Thompson – and most of the British media – were outraged by the announcement of the closure, with rumours circulating the company would lose its Royal Warrant. What was failed to mention is the difficulty posed for British brands to manufacture in England where prices are higher than almost anywhere else in the world. Production of Burberry polo shirts 'will now shift to the other existing sources of supply, which are all subject to our corporate social responsibility standards,' Mahony said.
25 January 2007
Retail drives Burberry Q3 sales
British fashion house Burberry posted buoyant third quarter results on Tuesday. Underlying sales for the period rose a whopping 25 perent on sales up 22 percent to £206 million. Underlying retail sales – which acocunt for 70 percent of total turnover - gained 24 percent, driven by existing and new stores, while the wholesale business recovered from a disappointing first half with 33 percent underlying growth, thanks in part to a shift in timing of shipments. Burberry raised its expectations for the business unit to a low-to-mid-teen underlying percentage increase. “This outstanding quarter has been led by Burberry's strong retail performance,” said chief executive Angela Ahrendts in a statement. In the second half, average underlying retail space rose by 14 percent.
Meanwhile, licensing revenues increased 12 percent on an underlying basis, driven by the excellent performance of fragrances and strong progress in watches. The company anticipates licensing revenue growth for the second half to be in the mid to high single digit range, with exchange rates continuing to affect figures.
“This performance is consistent with expectations for the financial year,” said Ahrendts. The planned closure of its factory in Wales in March 2007 is expected to cost the company a total of £5.2 million this year, although it has estimated that the closure will save it £1.5 million on an annual basis.
16 January 2007
Burberry may lose royal warrants
Burberry, the quintessential British clothing brand that is now manufacturing most of its goods in other countries, could lose its royal warrants as a row intensifies over the closure of its south Wales factory and the loss of 300 jobs. Chris Bryant, Labour MP for Rhondda, is writing to the Lord Chancellor to demand that MPs have a say in which firms get the warrant. This is currently determined by the Queen and the Prince of Wales. Bryant is also calling for a Constitutional Affairs Select Committee investigation into the same issue.
Bryant wants to see Burberry stripped of its status if it closes its Treorchy factory in the Rhondda Valley. Last Friday marked the end of the three-month consultation period Burberry launched to determine whether there was an alternative to closing the factory and moving to China. Sources close to the company say there is now no going back on its decision. The upmarket luxury brand maintains that it has no choice but to move to a cheaper location and that it still has a manufacturing presence in the UK.
8 January 2007
Burberry must account for factory closure
Burberry's top executives are to be summoned before a parliamentary committee over the luxury fashion group's plans to close a factory in Wales . The closure will result in the loss of 300 jobs and everyone from Secretary of State for Wales , Peter Hain, the Prince of Wales, the Archbishop of Canterbury and actor and global face of Burberry, Ioan Gruffudd, have voiced their opposition to the plan. Gruffudd even wrote chief executive Angela Ahrendts asking her to reconsider the plans. Now Ahrendts and Burberry Chairman John Peace will have to testify before the Commons Welsh Affairs Select Committee, which is questioning them as part of its inquiry into globalisation.
Though Burberry has declined to comment on the news, a spokesman said that keeping the factory at Treorchy open was no longer financially favourable. He said that the plans for closure followed in the wake of a year-long review and that Burberry would try to help as many workers as it could.
2 January 2007
Celebrities fight Burberry factory closing
Film star Rhys Ifans and the Prince of Wales have joined the national campaign to stop Burberry closing a factory in Wales, which will force 300 people out of work. Burberry, which prides itself on being a quintessentially British brand, plans to outsource the work to China, leaving just one factory in the UK.
Ifans, star of Notting Hill and Twin Town, said: 'If Burberry does go ahead and close this factory, it will be a devastating blow to Rhondda valley communities.' Prince Charles, a spokesman said, is keeping abreast of developments and has asked his charity to talk to all parties. Burberry says it is working on a plan that would see 50 workers redeployed on a new venture and that 48 workers have already left the firm since the announcement was made. It said if the plant closes, it will still have a British presence thanks to its factory in Yorkshire.
10 December 2006
Burberry sees backlash from celebrities
Burberry continues to spark controversy in its move to close a Welsh factory with 300 employees expected to lose their jobs. Prince Charles has raised concern and is understood to have contacted government ministers to ask if there is anything his Trust can do. Burberry, in order to meet high profit margins, is considering moving more production to China, where labour costs are significantly lower. Another concerned celebrity is Ioan Gruffudd, the Welsh actor and Hollywood star, as the polo shirt producing factory from Rhondda is close to where he grew up. Gruffud is one of the leading models in the Burberry fragrance campaign, along with Rachel Weisz.
This weekend, however, The Times reported that Gruffudd has pleaded with Burberry's CEO Angela Ahrendts, to salvage the factory and its staff from closure and unemployment. Burberry strikes a discord when its quintessentially British brand is being manufactured abroad. Many products, from Burberry checked jeans to accessories, are being licensed to companies outside of the UK, with markets such as Spain and Japan producing their own products, that are not sold in the UK, and that would dilute brand value considerably. Burberry is keen to advertise its authentic British heritage, however the focus for the company is slowly moving to other markets, where growth opportunities are greater. Burberry was founded in 1856 in Basingstoke, Hampshire. The signature check emerged as a brand signature on various products in the 1960s, although now it is only used on 10% of Burberry products.
27 November 2006
Burberry keeps profit in the bag
British fashion brand Burberry reported pre-tax profits fell from £78.1m to £73.4m due to restructuring costs, although it saw a rise in half-year sales of 11%, from £354m to £392m. Burberry stated the demand for its luxury bags boosted sales as did the advertising surrounding the company's 150 th anniversary, for which Christopher Bailey designed a special ‘icons collection' inspired by the House's archives.
Burberry's new quilted leather bags have been popular this season. Retailing for nearly £800, the celebrity association has kept the name in demand in fashion circles and the bag has been worn by the likes of Kate Moss and Elizabeth Hurley. Whilst sales of its accessories has been a huge success, Burberry has seen its concession at Selfridges been withdrawn due to underperforming and lack of direction and the bags are now sold amongst other brands on the main floor.
Burberry's new chief executive, Angela Ahrends, told the Telegraph “much work is needed behind the scenes. When businesses are growing at the rate this business was growing, it hides a lot of things.” A primary focus for Burberry is to expand in markets such as Asia and America and the company is planning to roll-out and aggressive store plan in the US and also Europe. A company insider said Burberry is moving offices next year as it has outgrown its current headquarters behind Piccadilly Circus. They are rumoured to be moving to Victoria.
15 November 2006
Burberry fight taken to assembly
Business may be booming at Burberry, with sales figures the highest they have been in the history of house and accessories selling out before they even make it to the shop floor, however Welsh factory workers are not amongst those sharing the wealth. Workers at a threatened Burberry factory in south Wales on Thursday held a demonstration against its closure at the Welsh assembly. The Rhondda-based factory, which employs 309 people, is in consultation about closing at the end of the year and moving production abroad. Campaigners have previously held demonstrations at the factory.
Earlier this month, there were protests outside the designer's store in London about the closure. Thursday's lunchtime demonstration will be addressed by Rhondda politicians Chris Bryant MP and Leighton Andrews AM. Mervyn Burnett, senior organiser for the GMB union, said: "This is the next step in the GMB campaign to gather support from elected representatives and others to maintain Burberry production in south Wales ."
The factory in Treorchy makes polo shirts and production will go where costs are lower, possibly to Asia or South America . Burberry has said the factory is no longer "commercially viable", but it would not abandon the UK. The union is asking the company to consider bringing new work to the Rhondda.
It says Burberry could make raincoats in Wales rather than increasing the amount of rainwear they make in Castleford, West Yorkshire . If the company was to make the extra 45,000 coats they plan to in Rhondda instead, the GMB says the company could save 220 of the 300 threatened jobs. The firm would need to move to a smaller site than its Treorchy base, but the union believes one could be found in the area, possibly with help from the assembly government. A Burberry spokeswoman said the company would look at all options, as the intention to close was "only a proposition".
25 October 2006
Burberry reports revenue rise
Burberry on Wednesday reported a 10 percent rise in first half revenue for its 150th anniversary year helped by five new stores opened in the United States and Europe. Burberry said that revenue in the six months ended Sept. 30 rose to 392 million pounds from 355 million pounds a year ago. Retail sales accounted for 43 percent of that growth and wholesale sales contributed 46 percent. Burberry as a brand currently sells womenswear and menswear, handbags, shoes and perfume through its stores in Europe , North America and Asia , as well as in 2,400 specialty and department stores worldwide.
Retail sales rose 23 percent while wholesale revenues increased by 1 percent on the same basis to a combined 351 million pounds ($651.1 million) against 315 million pounds a year ago. For the second quarter ending Sept. 30, overall sales climbed to 257 million pounds ($477 million) from 240 million pounds in the same period a year earlier, the company said. Chief Executive Angela Ahrendts, who joined Burberry in July from Liz Claiborne Inc., credited continued strength in womenswear and outerwear as well as the successful launch of its Icons collection with the positive results. Burberry Prorsum, the luxury line that shows during Milan fashion week, was hailed as one of the top Italian shows for the spring summer 2007 season.
12 October 2006
Burberry factory to close
A mass meeting is to be held at the Burberry factory in south Wales where workers will discuss the closure of the plant with union leader. The company has announced that the plant in Treorchy, Rhondda , is to close in December with the loss of 300 jobs. The news prompted a furious response from politicians and union leaders. Burberry is to talk to the assembly government but it appears unlikely it will halt plans to shift production to Asia or South America . Burberry said the plant was not "commercially viable", but the company would not abandon the UK .
The GMB union said it is appalled by the decision, claiming Wales had now lost 46,000 manufacturing jobs since 1994. Enterprise Minister Andrew Davies said he would be talking to Burberry's managing director on Thursday to make the case for the firm retaining its Rhonnda operation. He said the closure was "a bolt from the blue" with no indication that they were planning an announcement.
"We certainly want to find out why they are doing this to see if there's anything we can do as a government to change their minds," Mr Davies said. Rhondda MP Chris Bryant said he felt angered and betrayed by the news that the plant making polo shirts was to close. He said senior managers had guaranteed to consult him before they considered closure and broke their promise. Mr Bryant told BBC Wales he had met senior management two years ago, and they had guaranteed then they were not thinking about closing the plant.
"If they were even going to be thinking about going down that line, they [said they] would get in touch with me first, so that if there was a package we could put in from the Welsh assembly to help them stay here that would be possible, and they've not stood by that promise," he said.
However, Mr Bryant said he thought there was still a chance the factory could be saved, and he and Rhondda AM Leighton Andrews met the managing director on Wednesday to discuss the situation. Talks will be held with unions over plans to shut the site in early 2007.The company said the closure plan follows a year-long review of its supply chain and manufacturing process, leaving managers with "no obvious alternative other than to propose the closure of the factory".
Production will go overseas, where costs are lower. The firm has not said specifically where, but it will be either Asia or South America. It stressed the proposed closure was a one-off and the company would not abandon the UK with no cuts planned at other sites.
Local councilor Robert Bevan said: "This is a bitter economic blow to the Rhondda Fawr and the county as a whole. Burberry provided well-paid, quality employment and this is a sad loss to the economic infrastructure of the Rhondda ." Burberry has said it will help employees in Treorchy find alternative jobs inside or outside the company. The factory at Treorchy has been producing clothes since 1939 but it was only taken over by Burberry in 1989.
7 September 2006
Burberry used its rich archives as inspiration for its 150 th anniversary and to celebrate it being at the top of British luxury fashion with a new icon collection. From the trench to the check, Burberry is of course steep in icons and for autumn the brand takes their iconography up a gear. The new collection doesn't feature reissues, however, instead, Christopher Bailey, Burberry's creative director, infuses heritage (chic) into modern pieces.
A capsule collection includes quilted leather for men and women, making this outerwear as much at home on a country stroll as it is waiting in line at your local bus stop. The D-ring – usually seen on the shoulder of a trench – is reinvented in a superluxe print. In full force on a must-have waxed trench, it's also maxed out on a full range of accessories. Bag features include a padlock and buckled up doctors' shapes. The check, meanwhile, is subtle when mixed with either trim on bags or bleached out on a mac. Black, beige and red shade sunglasses sport the Burberry knight crusading on the side of your face.
25 August 2006
Burberry Q1 sales exceed expectations
Burberry has reported a 19 percent rise in first quarter sales to £135 million, exceeding analysts’ forecasts. Turnover of the luxury retailer’s retail operations rose 35 percent, while wholesale sales dipped 3 percent in an effort to focus more on direct sales and less on bulk sales. Angela Ahrendts, Burberry’s new chief executive, said the company’s goal was to develop into a global luxury retailer. “The strong first-quarter results reflect the continued momentum of Burberry’s retail operation across our primary product categories and geographical regions. As a whole, performance in the period to June 30 was consistent with expectations for the full financial year.” Ahrendts added that the four main priorities for the company were to create “retail-led growth”, enter “under-penetrated markets such as the US and Asia”, increase sales of accessories and integrate Burberry’s “disparate global operations”.
Chief financial officer Stacey Cartwright said that accessories currently account for about a quarter of total revenue, but could this could become “much higher”, as much as 40 percent of the total. She added that Burberry’s most expensive accessories were attracting “phenomenal interest from consumers and the fashion press, especially the Manor handbag.” High-margin accessories tend to be non-cyclical and resistant to the dips in consumer spending.
During the first quarter, Burberry opened new stores in locations that included Atlantic City, New Jersey, a replacement store in Taipei and two accessories concessions in Spain. The company is expected to roll out its retail space globally by at least 10 percent this year. It is believed to be investing about £50 million in new store openings in the Mid West of the US, secondary cities in Europe, and parts of Asia. Sales during the first quarter were strongest in Asia, where turnover soared 30 percent to £41 million, from £31 million last year. Sales in North America were weakest, but Ahrendts plans to resolve this by way of a major expansion into heart of the US. The Mid West has always been a tough market for luxury goods in the past.
13 July 2006
Burberry not a ‘chav’ brand according to new boss
Angela Ahrendts, the new boss of Burberry, is planning 'men only' stores in a move to reach a wider audience. The American, who last week replaced Rose Marie Bravo as chief executive of Burberry, downplayed the company's reputation as the brand of choice for 'chavs'.
'This is a very British notion,' she said, adding that Burberry is perceived as a 'modern classic brand' globally and that different formats, including dedicated accessory stores, will be looked at.
New ranges for men will be modelled by singer Bryan Ferry's sons Otis and Isaac, as well as members of the band Kasabian. Kate Moss and Stella Tennant will be among the models promoting Burberry's creations when it launches an autumn advertising campaign.
Ahrendts, former vicepresident of Liz Claiborne in the US, added that she was keen to expand Burberry's presence in North America.
Burberry will report firstquarter trading on Wednesday. Analysts at JPMorgan expect a 16% rise in sales to £131.6m.
9 July 2006
Burberry profits slide
Profits at Burberry dropped 4.9 percent last year to £106.4 million from £111.9 million. The dip was the result of costs related to the company’s technology revamp, Project Atlas. Operating profit before Atlas-related costs gained 2.7 percent to £165.6 million. For the fiscal year ended 31 March, turnover rose 3.8 percent to £742.9 billion from £715.5 billion.
“In a year of transition and investment, the group achieved solid financial results,” chief executive Rose Marie Bravo said in a statement last week. “With a strong spring season underway, we enter our 150th year with confidence in Burberry’s future.”
Bravo spoke for the last time as chief executive of Burberry. Angela Ahrendts will be taking over from her in July.
Chief financial officer Stacey Cartwright was optimistic about the number. “Underlying profit for the year was actually up 5 percent, and the decline was just due to costs linked to the preparation and initiation of Project Atlas,” she said. “By October, we’re going to have global sales and stock transparency – which we’ve never had before. We’ll be able to have early visibility on sales and stock trends, and frankly I can’t wait.”
Atlas costs for the current year are expected to be around £19 million. Burberry expects a “significant” negative exchange rate comparison due to the weak dollar, while licensing revenue is expected to remain flat. Meanwhile, first half wholesale sales rose slightly.
Sales last year rose, thanks partly to strong sales in the US and in the Asian Pacific region. New franchised stores in emerging markets like Poland, Turkey, India and Mexico were also said to have contributed to the gains. European sales remained flat, with weak performances in Spain and the UK. The rest of Europe enjoyed strong sales.
Burberry intends to increase its selling space by at least 10 percent in the current year. Over the next six months, new retail stores are planned for Atlantic City and Riverside, NJ, Kansas City, Madrid, Sydney and Vienna. The company will also continue to focus on openings in the US and Asian markets.
29 May 2006
Burberry H2 sales surge
Luxury goods retailer Burberry said sales for the second half of the fiscal year have risen 13 percent to £390 million. Surpassing expectations, the increase resulted from new and existing stores and offset a 7 percent drop in wholesale turnover. Underlying group revenues rose 3 percent.
The company said that it had reached the “tipping point” in its shift from mainly being a fashion wholesaler to being a global luxury goods house. Chief executive Rose Marie Bravo said that the spring collection had been well received and that a television ad featuring Oscar winner Rachel Weisz had caused sales to soar 16 percent in the last four months.
“Consumers' favourable response to spring merchandise, particularly women's wear, and an exciting advertising campaign contributed to strong retail performance,” she said. Bravo will become vice chairman of the company in July.
The drop in wholesale revenues in the US was attributed to the “ongoing adjustment of the brand's wholesale/retail balance”. Burberry also said that “soft demand (in Spain) resulted in a significant underlying sales decline” in its wholesale business. However, Bravo said the company is already combating this problem by completing the “strategically important shift to a (retail) concession format for a significant portion of our business in Spain.”
Bravo will soon be succeeded by Angela Ahrendts, who together with CFO Stacey Cartwright will oversee the reorganisation of Burberry's supply chain, back-office operations and licensing business.
Her former tenure with Liz Claiborne should stand Ahrendts in good stead to deal with the operational side of the business. Her experience with various aspects of retailing, like supply chain management, is expected to help focus the growth of the company.
Ahrendts was lured away from the US retailer by Burberry with a financial package of up to £15.6 million over three years. Shareholders are waiting for a smooth transition when Bravo steps down.
The company's shares rose 3.3 percent to £461.75 in trading on Wednesday, an additional rise on top of about 10 percent last year.
13 April 2006
Burberry reports third quarter results
Luxury fashion house Burberry has reported an underlying sales increase of 11 percent for the third quarter ended 21 December 2005 . The results were driven by new and existing stores. Total revenues for the quarter increased 1 percent on an underlying basis. Meanwhile, retail sales, which accounted for 68 percent of total sales, rose 11 percent to £115 million. The US and Europe experienced strong sales as did Hong Kong . Wholesale revenues, however, decreased 21 percent to £36 million, reflecting shipment timing differences relative to the comparative period, the company said. They were also affected by weak sales in Spain and fewer reorders in certain other countries.
Chief executive Rose Marie Bravo said, “In this retail dominated quarter, we were pleased with the results for the all-important holiday period. The business was led by our core outerwear and reinvigorated classics. At the same time, the favourable initial response to early spring deliveries across all categories provides a good start to Burberry's 150th year.” The company said it anticipates a mid-to-high single digit underlying drop in wholesale sales in the second half.
11 April 2006
Burberry to launch Icons range
In celebration of its 150 th anniversary, British fashion house Burberry is launching a collection titled ‘Burberry Icons'. The mens and womenswear ranges will sit between the Burberry London line and Burberry Prorsum, it's ready-to-wear collection designed by Christopher Bailey that shows during Milan Fashion Week.
Detailing will include quilted trench coats, studded leather belts, and accessories such as eyewear, watches and bags.29 March 2006
Burberry pulls Chinese fur from collection
Paul McCartney's wife is claiming a victory over fashion house Burberry in her protest against Chinese fur, according to Sky News. The firm's ready to wear autumn-winter 2006 collection included fur from a Chinese racoon dog, according to Heather Mills McCartney. She said Burberry had pulled the offending garments and agreed to stop using fur from China due to animal welfare concerns.
Heather apparently played Burberry officials a video of a racoon dog being skinned alive for its fur in China.
"I am ecstatic that they have taken the brave step of pulling their fur collection and doing what is only humane, and stating that they will never use fur from China again," she said.
"I really hope this will give the message to all the other fashion houses using fur from China, otherwise I plan to contact each one, one at a time.
"The animal-loving public do not want to see animals being skinned alive for fashion."
Burberry has not commented.
18 March 2006
Rachel Weisz new face of Burberry
Oscar winning actress Rachel Weisz is turning into something of a fashion muse. She looked stunning at the Golden Globes in a gold Donna Karan gown and chose a simple black Narciso Rodriguez dress for the Oscars earlier this month. Weisz, who is seven months pregnant, is the new face of Burberry's ad campaign for the new fragrance London . The ads were shot before Christmas.
"I love beautiful things and beautiful fashion," Weisz told The Associated Press in a recent telephone interview. "I like clothes that are beautifully cut that aren't too fussy." The fragrance is light and floral with a rich undertone. Weisz said she's particularly fond of perfumes with a sandalwood base, according to AP.
16 March 2006
Burberry fragrance sees growth
Burberry London is set to become one of the strongest fragrances for Inter Parfums', according to US fragrance manufacturer Inter Parfums ceo Jean Madar. The evaluation is based on the fragrance's performance to date in the UK, where it launched in February exclusively at Selfridges. The fragrance is now launching globally. US distribution is to a 400 door network including Saks Fifth Avenue, Bloomingdale's, Bergdorf Goodman, Nordstrom and Neiman Marcus.
“We are still on track to introduce a new women's fragrance for Lanvin and new men's lines for Paul Smith, S.T. Dupont and Nickel later this year,” Madar added. The 2006 guidance for Inter Parfums puts sales at $301m compared to $273m this year and net income at $16.9m versus $15.3m in 2005.
Inter Parfums' 2005 bottom line dropped on-year due, Madar explained, to the start-up costs involved in the Gap Inc deal signed in July. The deal has been extended to Gap Outlet stores and Banana Republic Factory Stores this week.
10 March 2006
Burberry Prorsum Milan show of the week
Christopher Bailey showed another strong collection during the menswear shows in Milan last week. Dubbed by many as the show of the week, the Burberry designer showed a refined yet quirky feel by capturing a Duke of Windsor-esque elegance.
Simplified, flattened ruffles on shirts were worn with cummerbunds. And slim double and single breasted tailoring in ink blue and dark grey had wide-peaked lapels and were matched with tight waistcoats. The look was teamed with skinny ties and geometric print shirts. A houndstooth coat came with a fur collar while leather was used for quilted trench coats and fitted motorcycle jackets. The biker theme was subtly reinforced with chained or studded belts worn with tailoring.
9 January 2006
>> more Burberry news on FashionUnited