Burberry takes steps to secure future growth after sales and profit decline
18/05/2016
Revenues for the 12-month period were £2.5 billion, on which it achieved profit before tax of £421 million. These figures represent year-on-year falls of 1% and 8.3% respectively. It mentioned declines in sales in Hong Kong and Macau as a particular issue, saying that excluding these two places, previously very popular shopping destinations for wealthy Chinese consumers, its sales figure for the year would have registered an increase of 3%.
Burberry said that it plans to grow its revenue in future by focusing on “key products”, making its operations as productive as possible, and by growing its e-commerce business. It said it also plans to “reduce complexity” in its business and simplify its processes. It said it hopes these measures can help it generate savings of at least £100 million per year by 2019.
On announcing the preliminary results, Christopher Bailey, Burberry’s chief executive and chief creative officer, commented: “While we expect the challenging environment for the luxury sector to continue in the near term, we are firmly committed to making the changes needed to drive future [growth], underpinned by strong brand and business fundamentals.”
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