Burberry Group PLC (LON:BRBY)

QUOTE AND NEWS
Financial Times  Sep 15  Comment 
Burberry and other fashion groups put cutting-edge technology at the forefront in effort to increase sales by drawing in a digital audience
guardian.co.uk  Aug 21  Comment 
Christopher Bailey offloads shares after shareholders slapped down fashion brand for handing him share awards Burberry chief executive Christopher Bailey has sold £5.2m of shares in the luxury fashion company, four months after taking over from...
Times Online  Aug 21  Comment 
Only six weeks after a revolt by investors over excessive pay at Burberry, its boss has boosted his bank balance...
Financial Times  Aug 19  Comment 
Analysts said return to its peak marks endorsement for Tim Cook, Apple chief, and his executives including former Burberry boss Angela Ahrendts
Financial Times  Jul 15  Comment 
Investors at Experian, Standard Chartered and Burberry, which are chaired by Sir John Peace, have expressed discontent about pay and governance
guardian.co.uk  Jul 14  Comment 
Following shareholder revolt on pay, luxury group's shares slide after downbeat note Following a revolt by Burberry's shareholders over the pay package for new chief executive Christopher Bailey, the luxury goods group is under the cosh again,...
New York Times  Jul 12  Comment 
Results of voting at Burberry’s annual general meeting Friday showed that 52.7 percent of shareholders protested the earnings Christopher Bailey is expected to receive.
Wall Street Journal  Jul 11  Comment 
Shareholders in fashion house Burberry protested over the pay and perks package of CEO Christopher Bailey, less than three months after he replaced Angela Ahrendts as she left for Apple.
guardian.co.uk  Jul 11  Comment 
He was hired on sight as the brand's designer and plucked from college by Donna Karan, but investors ask if he is worth £20m It is the winter of 2000 and Rose Marie Bravo is sitting alone at the back of Milan's Grand Hotel awaiting the arrival of...
guardian.co.uk  Jul 11  Comment 
Some 52% of shareholders fail to back Burberry pay report Burberry chairman insists £1m share award "essential" to keep CEO Christopher Bailey European stocks rally after Thursday sell-off UK construction output falls 1.1% in May 3.06pm...




 
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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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