BURBERRY profits exceed expectations and accelerate expansion
BURBERRY announced this week exceptional financial results with sales exceeding expectations. The British group also confirmed its plans to step up expansion, with a focus on emerging markets, e-commerce and menswear. Burberry would almost double capital spending to GBP 130 million (USD186 million) in its 2010-11 financial year, despite an uncertain economic outlook.
"We do believe that Burberry, distinct from what’s happening in the marketplace, has got specific momentum in the brand right now," CFO Stacey Cartwright told reporters, saying the group was reaping the benefit of past investment in IT systems and staff training, as well as cutting-edge design.
Burberry CEO Angela Ahrendts said there is a lot of momentum and much more needs to be done. She also added: ”we were able to deliver, we made profits in what was a challenging environment. Shame on us if we do not optimize on our performance and the brand’s momentum”. Burberry recently closed 300 wholesale accounts as part of an effort to maximize performance of its distribution channels.
On Wednesday, BURBERRY opened a major Burberry Brit store in New York’s Columbus Avenue and have just inagurated a 600 sqm store in Beirut, Lebanon. Earlier this year, BURBERRY opened 2 stores in Brazil and 3 more will be opened by the end of the year. The brand has been expanding in India too, with three stores opened just this year, thanks to a partnership with local retailer Genesis.
from WWD and Reuters