According to the new CEO of the British fashion house, it will capitalise on its British roots to reach $5 billion.
Speaking on the sidelines of Burberry‘s earnings call, new CEO Jonathan Akeroyd said he wanted to capitalise on the brand’s Britishness to increase sales of higher-margin accessories such as handbags and shoes.
Jonathan Akeroyd, who joined the house in April, said Burberry was the only major luxury brand that could claim to be “British”. This, he said, would set it apart from its French and Italian rivals. He hopes that accessories, which currently account for 37% of sales, will rise to over half in the long term. And that’s under the leadership of new designer Daniel Lee, who has a “rare talent” for leather goods.
“One of Daniel’s unique talents is his product sensibility,” says Jonathan Akeroyd. “He has a strong track record of creating bestsellers, particularly in accessories.”
Burberry’s half-year results, released on Thursday, showed a recovery in Europe and an improvement in mainland China. Quarterly shop sales rose 11 percent, a jump from the previous quarter. They brought first-half revenue to $1.61 billion, up 5 percent in constant currency. Adjusted operating profit increased by 6% to $343 million.
Despite some closures due to health restrictions, the decline in sales in mainland China was very limited (-1%) in the second quarter after a 35% drop in the first quarter. In Europe, the brand achieved a 25% increase in sales in the second quarter, thanks to an increase in the number of tourists from the US, the Middle East and Asia. Foreign visitors to destinations such as Paris, London and Milan accounted for 40% of business.
The Americas remained a weak spot, with quarterly sales down 3% due to lower demand for entry-level items. In addition, Americans tend to spend more abroad than at home.
Burberry maintained its near-term guidance through the end of its 2024 fiscal year of single-digit sales growth and a margin of about 20%.
Featured photo : © Burberry
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Passionnée depuis son plus jeune âge par l’art et la mode, Hélène s’oriente vers une école de stylisme, l’Atelier Chardon-Savard à Paris, avec une option Communication. Afin d’ajouter des cordes à son arc, elle décide de compléter sa formation par un MBA en Management du Luxe et Marketing Expérientiel à l’Institut Supérieur de Gestion à Paris dont elle sort diplômée en 2020. Elle a notamment écrit des articles lifestyle et beauté pour le magazine Do it in Paris et se spécialise en rédaction d’articles concernant le luxe, l’art et la mode au sein du magazine Luxus Plus.********** [EN] Passionate about art and fashion from a young age, Hélène went to a fashion design school, Atelier Chardon-Savard in Paris, with a Communication option. In order to add more strings to her bow, she decided to complete her education with an MBA in Luxury Management and Experiential Marketing at the Institut Supérieur de Gestion in Paris from which she graduated in 2020. She has written lifestyle and beauty articles for Do it in Paris magazine and specializes in writing articles about luxury, art and fashion for Luxus Plus magazine.