Burberry on Thursday increased targets for sales of its luxury fashion goods, adding it would “refocus on Britishness” after first-half earnings were boosted by easing lockdowns in Europe and a weak pound. Net profit jumped nearly a third to £193 million ($229 million) in the six months to the end of September compared with a year earlier. Sales jumped 11 percent to £1.35 billion. “Our focus in this next phase is on growth and acceleration,” chief executive Jonathan Akeroyd said in the earnings statement. “We have a clear plan to achieve this across brand, product and distribution.”
With help from new creative director Daniel Lee, Burberry is looking to “broadly double sales of leather goods, shoes and women’s ready to wear and grow outerwear by around 50 percent in the medium term”, the statement added. In the long term, Burberry aims to “grow accessories to more than 50 percent of group sales”. British national Lee replaced Italian designer Riccardo Tisci in September.
Burberry on Thursday said it wished to “harness the power” of its brand, “informed by a new creative vision set by Daniel Lee”. There would be a “refocus on Britishness”, with the group strengthening its “connection with British design, craft and culture”.
The company’s share price was flat in London trading after the update. “Burberry’s first half performance has been turbo charged by American tourists spending big in Europe as they took advantage of the stronger dollar,” noted Sophie Lund-Yates, equity analyst at Hargreaves Lansdown.
“With lockdowns in mainland China denting performance both in the region and abroad, it’s heartening to see other customers picking up some slack” with recession headwinds on the horizon. “Luxury names tend to be more insulated than other retailers in the face of economic downturns, but Burberry is slightly more exposed than some,” she added. – AFP