Burberry Group PLC (LON:BRBY)

QUOTE AND NEWS
TheStreet.com  Apr 16  Comment 
NEW YORK (TheStreet) -- Shares of Burberry Group plc   were up 2.83% to $49.27 today. The British luxury retailer said strong sales in China and South Korea helped second half revenue increase by 19% to $2.17 billion, ahead of analyst...
guardian.co.uk  Apr 16  Comment 
Angela Ahrendts, leaving to work for Apple, is free to depart in April, but might collect £8m share bonus in June Burberry has yet to confirm a leaving date for chief executive Angela Ahrendts, who resigned in October to join Apple but would be...
Financial Times  Apr 16  Comment 
newratings.com  Apr 16  Comment 
LONDON (dpa-AFX) - Luxury group Burberry Group Plc. (BRBY.L) Wednesday said total revenues in the six months ended March 31, increased 16 percent to 1.298 billion pounds from 1.116 billion pounds in the prior year. Underlying revenues climbed 19...
Wall Street Journal  Apr 16  Comment 
Luxury clothing company Burberry reported a rise in second-half sales, helped by online growth, but said it expects currency movements to hurt profit.
Wall Street Journal  Apr 16  Comment 
MarketWatch  Apr 7  Comment 
U.K. stocks suffer one of their biggest drops in a month, and a ratings downgrade for Burberry hits the luxury retailer’s shares.
guardian.co.uk  Apr 6  Comment 
Angela Ahrendts, who is leaving British fashion firm for Apple, will be awarded honour by business secretary Vince Cable The Burberry boss Angela Ahrendts is to be awarded one of Britain's highest honours for helping making the fashion company a...
Forbes  Mar 28  Comment 
What do Burberry, Bvlgari, Chanel, Coach, Dolce & Gabbana, Giorgio Armani, Miu Miu, Prada, Ralph Lauren, Tiffany & Co., Tory Burch, and Versace all have in common? Well, besides being powerhouse fashion and luxury brands, they all source their...
Forbes  Mar 27  Comment 
During a keynote talk I delivered in London last week, I was asked the question: “What brands really ‘get it’ when it comes to customer experience today?” This wasn’t a naïve question. It came from one of the 100 senior marketers from...
BusinessWeek  Mar 25  Comment 
For global luxury companies such as Coach and Burberry, the most attractive fashion demographic has become young urban males




 
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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