Burberry Group PLC (LON:BRBY)

QUOTE AND NEWS
guardian.co.uk  Dec 6  Comment 
Trampoline-loving dog Buster attracts more global views than Burberry and Sainsbury’s, as well as overseas rivals John Lewis’s ad featuring trampoline-loving dog Buster has been named the world’s biggest Christmas TV ad on YouTube after...
Benzinga  Dec 5  Comment 
U.K.-based luxury goods retailer Burberry (LON: BRBY) (OTC: BBRYF) has rejected multiple takeover approaches from U.S. rival Coach Inc (NYSE: COH) in recent months, according to a report on Financial Times. The Rumored Interest The report said...
guardian.co.uk  Dec 5  Comment 
Luxury goods group rises following report of rejected bid approaches Leading shares have shrugged off the No vote in Italy’s referendum and the subsequent resignation of prime minister Matteo Renzi, preferring to concentrate on the far...
Clusterstock  Dec 5  Comment 
LONDON — Shares in luxury fashion brand Burberry are climbing on Monday morning after a report over the weekend said that US group Coach tried to buy the company. The Financial Times reported on Sunday that Burberry rejected multiple takeover...
Reuters  Dec 4  Comment 
British luxury fashion brand Burberry has rejected multiple takeover offers from U.S. handbag maker Coach Inc, the Financial Times reported on Sunday.
Forbes  Nov 30  Comment 
There’s no shortage of inspiring content from fashion brands and retailers on Snapchat these days, but here's a pick of the best including Everlane, Burberry, Chubbies, Sophia Webster and more.
Wall Street Journal  Nov 30  Comment 
Rather than adding stores, some luxury labels are aiming to boost sales at existing sites. One way: catering to the whims of their best customers.




 
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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