Burberry to carry out more product development in shoes
27/05/2010
On announcing the results, chief executive, Angela Ahrendts, commented: “Burberry has delivered record profits in what have been very challenging markets. Our outstanding team, the consistent execution of our strategies and our brand momentum have once again enabled us to gain share in the luxury market. Looking forward, while mindful of the economic environment, Burberry plans to build on its strong financial position by accelerating investment in growth initiatives in retail, digital and new markets, while continuing to enhance the brand.”
Specifically, the company said it would open 20-30 new stores, "biased towards the Americas and Asia Pacific" in the current financial year, increasing capital expenditure to around £130 million and focusing on "key product categories".
The company went on to say that "large leathergoods" (principally handbags) is definitely one of its "key poduct categories", having been its fastest growing category in 2009-2010. The company said it would also carry out further product development in shoes.
In the most recent financial year, which ended on March 31 2010, leathergoods sales grew by 10% to reach 36% of all Burberry retail or wholesale revenue. Large leathergoods accounted for half of all non-apparel retail sales, and proved particularly successful in Asia. The company said it would not be renewing the licences it has given to some retailers in Japan to sell leathergoods collections specific to that market. It explained that this move was to avoid confusion arising from selling the international collection alongside country-specific designs in the same market.
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