Burberry aims to reach a revenue of 5 billion UK pounds in the long-term. It means (almost) doubling the 2.83 billion with which it closed its last fiscal year in March 2022. How? By doubling sales of leather goods, shoes and prêt-à-porter for women. This also means growing accessories’ sales to account for over 50% of overall ones and doubling turnover from the e-commerce channel (to make them worth 15% of overall turnover), or at least that’s the roadmap designed by CEO Jonathan Akeroyd. Burberry meanwhile has stated to have increased revenue by 5% during the April-September 2022 semester.
Accessories and leather goods to take off
Akeroyd, who substituted Marco Gobbetti, stated that “in the medium term”, 3 to 5 years, revenue should reach 4 billion UK pounds a year. Growth drivers include leather goods, shoes, prêt-à-porter for women and jackets. The long-term goal is to reach 5 billion, and accessories should represent over 50% of overall sales. Burberry will focus on its British heritage with (English) creative director Daniel Lee. Thomas Chauvet, analyst with Citigroup, believes that the plan represents “an improved balance in terms of product categories, channels, and an increased differentiation for the brand”, compared to the previous, which had similar objectives, says the Financial Times.
Growing leather goods sales
The financial results for the April to September period, equal to the 1st semester of the fiscal year, show a 5% increase in sales (1.35 billion UK pounds). Operating profits also increased by 6%, slightly above expectations. “Sales of leather goods – reads the company’s official press release -, recorded a solid take off, with comparable sales up 15% during the 2nd quarter and +11% in the first quarter”.
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