The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Burberry Group Plc said it will add new leather goods and accessories and refurbish its stores as chief executive Marco Gobbetti lays out his strategy for reigniting growth at the trench-coat maker.
The update came as the London-based company reported first-half revenue of £1.26 billion ($1.66 billion), 1.6 percent above the average analyst estimate, giving Gobbetti a boost as he prepares for a future without creative head and former chief executive Christopher Bailey, who's set to leave next year.
“To win with this consumer, we must sharpen our brand positioning,” Burberry said in a statement. “This will require us to change our approach to product, communication and customer experience.”
First-half revenue rose 4 percent on an underlying basis, above analyst expectations. Growth was strongest in the company’s own stores in the Asia-Pacific region, the company said.
Among the biggest challenges for the new chief will be to fix the problems in Burberry’s US business, where the company is cutting back on sales and trimming its exposure to department stores amid concern that its brand has gotten diluted.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.