Burberry ‘still committed’ to Yorkshire sites
Fashion house reports upturn in sales
LUXURY RETAILER Burberry said it is delighted with the progress it is making in Leeds and it remains committed to its manufacturing operations in Yorkshire.
The firm has recruited 340 people at its new Burberry Business Services site at 6 Queen Street in Leeds city centre and is on track to hire 400 people by the end of the year.
The group outlined its plans for Yorkshire as it announced a 3 per cent jump in like-for-like sales in the first half after new creative director Riccardo Tisci took the helm.
The firm said it remains committed to its manufacturing sites in Castleford and Keighley and it has no plans to develop the 10 acres of land it owns in Leeds next to the Grade I listed Temple Works building.
Last year Burberry let an option lapse on the Grade I listed Temple Works building in Leeds’s South Bank. The firm still owns the land in Leeds.
Burberry’s chief operating and financial officer Julie Brown said: “We are committed to Castleford and Keighley and we have no plans to change the UK picture. It’s a really important part of our heritage to make trench coats in Yorkshire.”
The firm said it has made great progress with the new Burberry Business Services site in Leeds.
Ms Brown said: “We are delighted with the progress and talent we’ve attracted in Leeds. We have recruited 340 roles and had thousands of applications. We will have around 400 people in Leeds by the end of the year. We’ve done it in record time.”
The Leeds office has brought together teams from finance, HR, procurement, customer services and IT.
Burberry said its transformation plan is on track to deliver cost savings of £100m this year as it hailed an “exceptional” reception for its new head designer, Mr Tisci.
Cumulative cost savings reached £80m, with the group confirming a goal for the full year of £100m.
Adjusted operating profit fell by 4 per cent on a reported basis but was up 8 per cent at constant currency.
Chief executive Marco Gobbetti said the reception of Mr Tisci’s first collection for the house had been “exceptional”.
Burberry’s overall revenue was down 3 per cent, reflecting a move to take beauty products out of house through a strategic partnership with Coty last year.
Excluding the impact of last year’s beauty wholesale income, revenue rose 3 per cent to £1.22bn.
Higher like-for-like sales in stores included growth in the UK, despite concerns of weaker consumer demand and lower tourist spend.
Asia Pacific also saw midsingle digit growth, as Chinese spend shifted to tourist destinations such as Hong Kong and Korea. The region has been a concern for investors as the threat of a trade war between China and the US weighs on consumer sentiment.
Mr Gobbetti said the company was energised by early results of the transformation process.
The company is in the process of closing some shops and pulling out of department stores as it targets high-end shoppers.
3% Percentage increase in likefor-like sales in the first half after new creative director Riccardo Tisci took the helm.