Burberry to move even more upmarket
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.