Burberry to move fur­ther up­mar­ket as prof­its jump

The Scotsman - - Business -

0 Plans to over­haul the busi­ness came along­side news of a 26% rise in in­terim prof­its to £128m Burberry has an­nounced a store clo­sure pro­gramme as part of a strate­gic over­haul that will see it fo­cus its ef­forts solely on lux­ury shop­pers.

The plans are part of new chief ex­ec­u­tive Marco Gob­betti’s vi­sion for the com­pany, in a bid to “sharpen” the brand’s po­si­tion­ing.

Burberry did not say how many stores it will “ra­tio­nalise” or the num­ber of staff af­fected by the move, but the clo­sures will mainly af­fect its whole­sale arm, which rep­re­sents 30 per cent of the group’s busi­ness, and will ini­tially fo­cus on the US and Europe. The group made the an­nounce­ment along­side first-half re­sults, which saw the firm book a 26 per cent rise in pre-tax prof­its to £128 mil­lion.

Like-for-like sales rose 4 per cent as rev­enues came in at £1.26 bil­lion in the six months to 30 Septem­ber.

“I am pleased with our per­for­mance in the half, with strong dou­ble-digit un­der­ly­ing profit growth,” said boss Gob­betti.

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