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Burberry delivers strong financial progress
26 May '11
2 min read
Burberry Group plc, the global luxury company, announces its results for the year ended 31 March 2011.
Angela Ahrendts, Chief Executive Officer, commented:
“Burberry delivered strong operational and financial progress during the year, thanks to the consistent execution of our core strategies by our team and partners, more closely connecting our brand vision and values to consumers around the world. While mindful of global macro challenges in the current year, we will continue to invest to drive growth across our portfolio by channel, region and product.”
Business and Financial Review
2010/11 review
In 2010/11, Burberry delivered a 27% increase in revenue and a 39% increase in adjusted profit before tax. The growth in retail and wholesale (revenue up 29%, adjusted operating profit up 59%) was driven by the consistent execution of Burberry's five core strategies.
Leveraging the franchise
• Burberry's product strategies continued to drive growth. Outerwear contributed over half of apparel sales in mainline retail, with about 30% growth year-on-year, helped by strong sales of both fashion and core styles. In menswear, where Spring/Summer 2011 was the first collection designed entirely in-house, revenue grew by 31% in the year, with good initial results in tailoring. Clearer segmentation helped top of the pyramid Burberry Prorsum and London outperform, as consumers responded to design-driven outerwear and monthly capsules.
• Burberry's marketing strategies and use of digital media to connect with consumers drove brand awareness, reach and sales growth. The roll out of the new global digital platform at Burberry World (burberry.com) began during the fourth quarter, introducing consumers to a fully immersive brand experience as well as improved functionality for online shopping. Digital technology (or retail theatre), which includes internal and external screens, touch screen technology and iPads, was rolled out to key stores, enabling, for example, the February runway show to be streamed to customer events in nearly 40 stores. In social media, Burberry now has over six million Facebook fans globally.
• The restructuring of the Spanish business announced in February 2010 is largely complete. The domestic collection was discontinued from the end of Autumn/Winter 2010, with only the global collection distributed from Spring/Summer 2011 on a more limited and appropriate basis (two mainline stores, 20 retail concessions and fewer than 100 wholesale accounts). This business is now integrated within Burberry's European regional structure and reports as such.
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Angela Ahrendts, Chief Executive Officer, commented:
“Burberry delivered strong operational and financial progress during the year, thanks to the consistent execution of our core strategies by our team and partners, more closely connecting our brand vision and values to consumers around the world. While mindful of global macro challenges in the current year, we will continue to invest to drive growth across our portfolio by channel, region and product.”
Business and Financial Review
2010/11 review
In 2010/11, Burberry delivered a 27% increase in revenue and a 39% increase in adjusted profit before tax. The growth in retail and wholesale (revenue up 29%, adjusted operating profit up 59%) was driven by the consistent execution of Burberry's five core strategies.
Leveraging the franchise
• Burberry's product strategies continued to drive growth. Outerwear contributed over half of apparel sales in mainline retail, with about 30% growth year-on-year, helped by strong sales of both fashion and core styles. In menswear, where Spring/Summer 2011 was the first collection designed entirely in-house, revenue grew by 31% in the year, with good initial results in tailoring. Clearer segmentation helped top of the pyramid Burberry Prorsum and London outperform, as consumers responded to design-driven outerwear and monthly capsules.
• Burberry's marketing strategies and use of digital media to connect with consumers drove brand awareness, reach and sales growth. The roll out of the new global digital platform at Burberry World (burberry.com) began during the fourth quarter, introducing consumers to a fully immersive brand experience as well as improved functionality for online shopping. Digital technology (or retail theatre), which includes internal and external screens, touch screen technology and iPads, was rolled out to key stores, enabling, for example, the February runway show to be streamed to customer events in nearly 40 stores. In social media, Burberry now has over six million Facebook fans globally.
• The restructuring of the Spanish business announced in February 2010 is largely complete. The domestic collection was discontinued from the end of Autumn/Winter 2010, with only the global collection distributed from Spring/Summer 2011 on a more limited and appropriate basis (two mainline stores, 20 retail concessions and fewer than 100 wholesale accounts). This business is now integrated within Burberry's European regional structure and reports as such.
Click here for more details
Burberry Group plc
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