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Burberry Sales Beat Estimates

The London-based company reported first-half revenue 1.6 percent above the average analyst estimate, giving Gobbetti a boost as he prepares for a future without creative head Christopher Bailey.
Burberry's Autumn/Winter 2017 show | Source: Courtesy
By
  • Bloomberg

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.

By Eric Pfanner; editors: Eric Pfanner and John J. Edwards III.
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