Burberry Group PLC (LON:BRBY)

QUOTE AND NEWS
guardian.co.uk  Jul 23  Comment 
Fashion company hands £9m in shares from bonus schemes to CEO, avoiding last year’s confrontation with investors Christopher Bailey has cemented his position as one of the highest paid chief executives in the FTSE 100 after the Burberry boss...
Yahoo  Jul 16  Comment 
Investors in British luxury brand Burberry (BRBY.L) overwhelmingly backed boss Christopher Bailey's multi-million pound pay package on Thursday, a reversal from last year when they opposed his remuneration. Bailey is among the highest-paid bosses...
Reuters  Jul 15  Comment 
Britain's top share index ended flat on Wednesday, with building supplies company Travis Perkins leading gainers after a broker upgrade, while luxury goods maker Burberry was among the biggest fallers after posting slower sales growth.
guardian.co.uk  Jul 15  Comment 
Luxury fashion house suffers further dips from lucrative markets in east Asian city and region as tourism from mainland China drops Burberry’s reliance on Chinese consumers was highlighted in its first quarter of trading as a sales decline in...
newratings.com  Jul 15  Comment 
LONDON (dpa-AFX) - The UK market was in positive territory on Wednesday, as the Greek parliament votes on the reform measures. Eurozone finance ministers will hold a conference call today to discuss the Greece situation. Meanwhile, The...
MarketWatch  Jul 15  Comment 
The FTSE 100 is unchanged and ends a win streak, with retailer Burberry losing ground after a trading update.
newratings.com  Jul 15  Comment 
LONDON (dpa-AFX) - Luxury goods group Burberry Group Plc. (BRBY.L) Wednesday said its first-quarter retail sales grew 10 percent from last year, and 8 percent on an underlying basis, supported by double-digit growth in Europe, Middle East, India &...
newratings.com  Jul 15  Comment 
Wall Street Journal  Jul 15  Comment 
Burberry reported a slowdown in quarterly same-store sales growth amid slackening demand for luxury goods in Hong Kong and other parts of the Asia-Pacific region.
Financial Times  Jul 15  Comment 
Fall in luxury spending and grey market trade are a challenge for retailer




 
TOP CONTRIBUTORS

Burberry Group plc (London Stock Exchange :BRBY) is the UK's number one luxury retailer by revenue. The firm designs, sources, manufactures and distributes luxury mens, womens and childrenswear and non-apparel accessories globally through its own retail stores, concessions and wholesale customers. In fiscal 2010, BRBY reported net sales of £1.28 billion and net income of £81.4 million.[1]

Despite harsh economic conditions in Europe, where Burberry receives nearly half of net sales annually,[1] the firm continued to grow and prosper in fiscal 2010. The main driver for Burberry's success has been its restructuring of its global business plan, such as opening more stores in the Asia Pacific region. In addition to global restructuring, Burberry has focused on improving non-apparel (fashion accessories) sales to have a more balanced product line.

Company Overview

Business Growth

2010 Fiscal Year Performance

  • Burberry posted fiscal year revenue of £1.28 billion, a 7% increase compared to fiscal 2009.[1]
  • The firm reported net income of £81.4 million, compared to a net loss of £6 million in fiscal 2009.[1]

Business Segments

  • Retail (58% of fiscal 2010 Revenue)[1]
  • Wholesale (34%)
  • Licensing (8%)

Geographic Presence

  • Europe (44% of Revenue)
  • Americas (27%)
  • Asia Pacific (24%)
  • Rest of World (5%)

Trends and Forces

Exposure to European Macroeconomics

Burberry, based in the U.K., receives nearly 50% of annual revenues from European markets.[1] Furthermore, Burberry is a luxury retailer whose profits are sensitive to consumer confidence levels. If a Europe-specific economic crisis, such as European debt contagion, occurs, then Burberry could suffer relative to its international competitors. To obtain a more diversified geographic presence, BRBY has opened stores in the Asia Pacific region -- the fastest growing luxury retail market in the world.

Burberry Focuses on Non-Apparel Business

Burberry's apparel line, such as shirts, coats, and pants, has been the firm's core revenue producer since the firm's beginning. Although, the firm has focused on improving its non-apparel business -- items such as handbags, scarves, shoes, and jewelry.[1] The key non-apparel product is the handbag, most of which are designed with Burberry's trademark flannel print, which composes 48% of non-apparel revenue.[1] Burberry has continued to expand the non-apparel business in Tokyo -- the world's largest fashion accessories market.[1]

Competition

Burberry competes against other retailers in the estimated £150 billion luxury goods market.[1] Publicly-traded companies are listed below. BRBY also competes against privately-held luxury retailers such as Giorgio Armani, Prada and Gucci.

  • Hugo Boss The German luxury retailer produces the same product lines as BRBY and competes for European, American, and Asian market share.
  • LVMH Moet Hennessy LVMH's Fashion business, with brands such as Marc Jacobs and Louis Voitton, competes directly with Burberry's Retail business. LVMH also has profitable wine and leather goods businesses.
  • Christian Dior: Like Hugo Boss, the Paris-based Dior creates similar product lines and competes with Burberry in European, American, and Asian markets.
  • Coach The U.S. luxury retailer competes with Burberry's fashion accessories product line.

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Burberry 2010 Annual Report
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