Burberry thanks leather goods. During the fiscal year that ended on April 2023, comparable sales of leather goods (considering the same number of stores), grew 12%. During the 4th quarter, the increment was 15% thanks to the recovery of the Chinese market. To compare the result, coats’ sales, another strong category for the brand, grew 7% year on year. A large portion of the handbags introduced in the collections was done by the previous creative director Riccardo Tisci. Now Burberry has large expectations with regards to Daniel Lee’s creations (new creative director). They will be in stores in September.
Strengthening the chain pays off
Last November, Burberry initiated a transition phase to become “a modern British luxury brand with the medium-term of increasing sales to 4 billion UK pounds”. The “long-term goal is to reach 5 billion”. In order to do so, CEO Jonathan Akeroyd has invested in its supply chain. For example, the acquisition of Pattern, which should be completed by the end of the current fiscal year. The brand has also “centralized all its supply chain and product development teams into a single function headed by the new Chief Supply Chain and Industrial Officer to favor more connectivity and guarantee the end-to-end delivery responsibility”, says the company.
Burberry thanks leather goods
Leather goods is a crucial segment for Burberry’s development plan. The results obtained during the 2022/2023 FY are attributed by the brand to the “constant growth of women’s handbags, specifically the Lola (in photo) and Frances models and the launch of the vintage collection Burberry Check”. Overall, the British brand closed the FY with a revenue of 3.09 billion UK pounds, meaning +10% on the previous year even if the previous had 52 weeks against the 52 of this year. When comparing 52 weeks only at constant exchange rates, revenue increased 5%. EBIT also reached 24% of revenue to 634 million.
Read also:
