An uptick in its first quarter sale was reported by the British luxury brand Burberry following an turnaround strategy of the brand which entailed moving to the stores some of the new designs that were made by its creative chief Riccardo Tisci.
It has been more than a year since the company has initiated a complete overhaul in its business strategies to stage a turnaround of fortunes and is being overseen by its CEO Marco Gobbetti. The aim of the turnaround strategy is to create a perception of Burberry as a more upmarket brand and to revive its image. That strategy includes using of the edgier takes by Tisci on some of its classic products such as the iconic trench coat of the company.
By the end of June, almost half the wares on offer in its shops were accounted for by the new products, said the brand. This was something that was more than what some analysts and industry experts had been expecting.
The company said that the result of this strategy had helped it to increase sale growth in some stores by 4 per cent, which was significant in comparison to the average growth of just 1 per cent in the previous quarter. That growth rate was more than the 2 per cent growth in sale as analysts had been expecting for the quarter. The increased sale growth was also helped by the gambling of the company on significantly increasing the offers from a new designer.
“The consumer response was very promising, delivering strong growth in our new collections,” Gobbetti said in a statement.
Compared to other luxury brands and market leaders such as LVMH’s Louis Vuitton or Kering’s Gucci, the performance in recent quarters had been lackluster. On the overall, the luxury market has been driven by a growing demand in China for luxury products despite its trade war with the United States. The other major luxury brands are due to report their quarterly performance next week for the April to June quarter.
In line with the rest of the luxury industry, there was also slight enhancement in the growth in revenues for Burberry from China specifically and from the Asian region in general despite the ongoing, prolonged and acrimonious China-US trade war.
The overhauling of the product offering at Burberry included the offering of a new logo-style print, or monogram, and the company expects that this would become a hit among customers as the company experiments with its reach in high-margin handbags, the company is also banking on its strategy of redesigning of its stores as well as undertaking a major marketing campaign with specific focus on implementing large social media campaigns.
For the entire 2020 financial year, the its earlier forecast for a broadly stable revenue and operating margin at constant exchange rates was reaffirmed by the company. The company further forecast that it would not be till 2021 that investors can expect to see any significant and meaningful increase in its revenue and operating profit.
(Source:www.nytimes.com)
It has been more than a year since the company has initiated a complete overhaul in its business strategies to stage a turnaround of fortunes and is being overseen by its CEO Marco Gobbetti. The aim of the turnaround strategy is to create a perception of Burberry as a more upmarket brand and to revive its image. That strategy includes using of the edgier takes by Tisci on some of its classic products such as the iconic trench coat of the company.
By the end of June, almost half the wares on offer in its shops were accounted for by the new products, said the brand. This was something that was more than what some analysts and industry experts had been expecting.
The company said that the result of this strategy had helped it to increase sale growth in some stores by 4 per cent, which was significant in comparison to the average growth of just 1 per cent in the previous quarter. That growth rate was more than the 2 per cent growth in sale as analysts had been expecting for the quarter. The increased sale growth was also helped by the gambling of the company on significantly increasing the offers from a new designer.
“The consumer response was very promising, delivering strong growth in our new collections,” Gobbetti said in a statement.
Compared to other luxury brands and market leaders such as LVMH’s Louis Vuitton or Kering’s Gucci, the performance in recent quarters had been lackluster. On the overall, the luxury market has been driven by a growing demand in China for luxury products despite its trade war with the United States. The other major luxury brands are due to report their quarterly performance next week for the April to June quarter.
In line with the rest of the luxury industry, there was also slight enhancement in the growth in revenues for Burberry from China specifically and from the Asian region in general despite the ongoing, prolonged and acrimonious China-US trade war.
The overhauling of the product offering at Burberry included the offering of a new logo-style print, or monogram, and the company expects that this would become a hit among customers as the company experiments with its reach in high-margin handbags, the company is also banking on its strategy of redesigning of its stores as well as undertaking a major marketing campaign with specific focus on implementing large social media campaigns.
For the entire 2020 financial year, the its earlier forecast for a broadly stable revenue and operating margin at constant exchange rates was reaffirmed by the company. The company further forecast that it would not be till 2021 that investors can expect to see any significant and meaningful increase in its revenue and operating profit.
(Source:www.nytimes.com)
