Burberry is experiencing a period of celebration as the luxury fashion house’s brand transformation efforts have been met with a strong response in the first half of the year. The company is thrilled about the progress made in repositioning the brand, crediting the positive feedback to its new creative vision and the debut collection by Riccardo Tisci, named Kingdom. Notably, influencers, press, buyers, and customers alike have all welcomed these changes with exceptional enthusiasm.
Though there were a few challenges on the balance sheet, they were easily explained and did not overshadow the positive developments. Revenue saw a slight decline of 3% to £1.22bn; however, excluding beauty wholesale revenue, there was a 3% growth observed. Retail channel sales remained stable at £944m, with a 2% growth on a currency-neutral basis and a 3% increase in comparable sales. The company’s adjusted operating profit decreased by 4% to £175m, but reported operating profit surged by 36% to £173m. Pre-tax profit also saw a 36% increase to £174m.
The success experienced by Burberry can be attributed to the effective launch of its new go-to-market model, featuring monthly product drops. The company has noticed a shift in consumer perception, with heightened engagement on social media platforms such as Instagram and WeChat. Additionally, there has been a positive wholesale response to the new products. Burberry is realistic about the fact that transitioning the product offer and altering consumer perception will require time and effort.
Regional performance for Burberry was robust, with growth recorded across all regions. Asia Pacific saw mid-single-digit percentage growth, driven by increased spending from Chinese customers. The Americas also experienced mid-single-digit percentage growth, with the US consistently performing well throughout the period.
Regarding product offerings, Burberry received positive feedback on newly launched handbags and emphasized the strength of its apparel range. The company’s emphasis on offering a comprehensive wardrobe selection has led to ongoing growth across various product categories. Notably, outerwear has been a standout performer, particularly with the success of the Car Coat and refreshed quilt program.
Looking ahead, Burberry is optimistic about its future prospects and is dedicated to achieving further cost savings. The company’s transformation under the guidance of Riccardo Tisci, coupled with the positive response from influencers and customers, paints a promising outlook for this iconic British brand.
To learn more about Burberry’s latest collections and updates, visit their official website here. For fashion enthusiasts looking to stay updated on luxury brands like Burberry, check out this informative article here.
