Burberry to build on British heritage as it targets revenue of £5 billion
Burberry’s new chief executive Jonathan Akeroyd has unveiled a new strategy that aims to drive revenue and growth for the luxury brand.
As part of Burberry’s interim results announcement, he said the plan will harness the power of the brand with a new creative vision set by creative director Daniel Lee.
It will also “refocus on Britishness” and strengthen Burberry’s connection with British design, craft and culture.
In addition, the brand will work to accelerate the rate of customer acquisition, strengthen its relationship with them, and drive loyalty and retention.
Part of the plan will also include converting all stores to Burberry’s new concept by the end of FY26 and doubling online revenue to reach around 15% of retail sales in the medium term.
Akeroyd said: “Burberry has an extraordinary legacy, a unique British heritage and a very strong platform to build on, as shown in our half-year results. Our focus in this next phase is on growth and acceleration.
“We have a clear plan to achieve this across brand, product and distribution and a very talented designer in Daniel Lee, supported by a passionate team.
“I am confident in our ability to deliver our medium-term targets and realise our potential as the modern British luxury brand. I am excited about what we can achieve in pursuit of our long-term ambition to reach £5 billion in revenue.”
In the 26 weeks to 1 October, Burberry’s sales increased by 5% to £1.35 billion at constant currency exchange rates while adjusted operating profit rose by 6% to £238 million on the prior year.
While comparable store sales in Burberry’s Asia Pacific region declined by 4% following first quarter Covid related lockdowns in mainland China, sales in the EMEIA region grew by 34%. Meanwhile, sales in the Americas fell 3%.
Looking ahead, Burberry said: “We maintain our near-term guidance to FY24 while mindful of the challenging macro environment and its potential impact on trading, particularly Covid-19 related disruption in mainland China and recessionary risks in Europe and the Americas. We have established a new medium-term target to grow sales to £4 billion at CER, sustaining high-single digit growth with operating leverage ensuring good margin progression.”
