Burberry to move even more up­mar­ket

The Irish Times - Business - - BUSINESS / MARKETS -

Burberry, the maker of £1,400 (€1,578) trench­coats and £500 ban­danas, plans to move even more up­mar­ket and es­tab­lish it­self “firmly in lux­ury”, as it seeks en­hanced profit mar­gins that have proved elu­sive un­der out­go­ing de­signer Christo­pher Bailey.

Shares in the lux­ury brand fell 10 per cent in early trading in Lon­don, on re­ported pre­tax prof­its of £127 mil­lion in the first half. That marked a 24 per cent in­crease on last year but was be­hind ex­pec­ta­tions. Same-store sales in­creased 4 per cent, en­abling first-half rev­enues to hit £1.3 bil­lion.

Marco Gobbetti, who took over as chief ex­ec­u­tive in July, vowed to ac­cel­er­ate and deepen the cost cuts be­gun un­der his pre­de­ces­sor Mr Bailey, and now plans to save £120 mil­lion a year by 2020.

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