Burberry Group PLC (LON:BRBY)

QUOTE AND NEWS
guardian.co.uk  Apr 13  Comment 
Sir John Peace says his successor is right choice to lead luxury brand through new chapter The luxury brand Burberry has appointed the former boss of B&Q owner Kingfisher as its new chairman. Gerry Murphy, who currently chairs the food group...
SeekingAlpha  Apr 13  Comment 
Financial Times  Mar 28  Comment 
Talk of weak iPhone shipments keep tech stocks under pressure
guardian.co.uk  Mar 24  Comment 
As the designer stands down after 17 years, he explains how he turned an ailing raincoat maker – with a reputation for ‘chav check’ – into one of the world’s biggest luxury brands • Adwoa Aboah models his final collection here In...
Wall Street Journal  Mar 1  Comment 
Burberry named Italian designer Riccardo Tisci as creative director, seeking to re-energize its brand as the British fashion label struggles with weak sales in the U.S., its largest market.
Financial Times  Mar 1  Comment 
Barclays cautions on Hikma recovery prospects
Channel News Asia  Mar 1  Comment 
Luxury clothing company Burberry said Riccardo Tisci would join as its new chief creative officer, naming the former Givenchy designer as its replacement for Christopher Bailey.
New York Times  Feb 20  Comment 
In two jam-packed days, the model and activist speaks about positive fashion, walks in Christopher Bailey’s final show for Burberry — and supports emerging designers.
New York Times  Feb 18  Comment 
Christopher Bailey exits Burberry, J.W. Anderson mixes genders and Simone Rocha ties it all up.
Financial Times  Feb 18  Comment 
After 17 years, and having transformed the face of British fashion, Christopher Bailey walks away from a world ‘in chaos’




 
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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