Burberry Group PLC (LON:BRBY)

Financial Times  Oct 21  Comment 
Burberry is the best FTSE 100 performer on merger talk with Coach
MarketWatch  Oct 21  Comment 
A report that Coach is in talks to acquire Burberry has some experts wondering whether it would yield more than just cost-cutting benefits.
Benzinga  Oct 21  Comment 
Shares of Coach Inc (NYSE: COH) were trading higher by nearly 4 percent early Friday morning following unconfirmed reports the fashion icon is being targeted for an acquisition by London-based Burberry Group (which trades (OTC: BBRYF) in addition...
MarketWatch  Oct 21  Comment 
U.K. stocks close slightly lower Friday, as British American Tobacco drops while Burberry Group pops higher on separate merger prospects.
Wall Street Journal  Oct 18  Comment 
Sterling’s sharp slide is buffeting Ryanair, Europe’s largest airline, but providing one of the continent’s best-known luxury brands, Burberry, a much-needed cushion.
Wall Street Journal  Oct 18  Comment 
It’s a good time to pick up a Burberry trench coat if you happen to be passing through the U.K. It’s probably a bad time to buy the British designer’s stock.
BBC News  Oct 18  Comment 
Famous trench coat maker Burberry credits the fall in the pound for driving up sales in its UK stores by almost a third.
Financial Times  Oct 18  Comment 
Revenue increase in group’s own stores offset by weakness in wholesale business
guardian.co.uk  Oct 18  Comment 
Luxury goods group benefits from pound’s fall but wholesale disappoints Leading shares have recovered ground, helped by commodity stocks rebounding as metal and oil prices rose, partly due to some weakness in the dollar. But Burberry has...


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]


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.


  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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