Burberry becomes British again after Italian pair fails
Burberry’s new leadership plans a return to “Britishness” after a revamp by an Italian executive duo failed to keep the UK brand abreast of its luxury rivals.
The new team of CEO Jonathan Akeroyd and creative chief Daniel Lee want to increase accessories to more than 50% of sales in the long term, banking on high-margin products in their overhaul of the trenchcoat maker.
Comparable store sales rose by double digits in the three months ended in September as US tourists took advantage of the strong dollar to snap up luxury goods in Europe. Still, growth fell short of the high bar set by rivals such as LVMH SE and Hermes International.
Akeroyd, who took charge in March, was to provide more details of his strategy later on Thursday. In a first step towards shaking up the brand, the Versace veteran in September named Lee to succeed Riccardo Tisci as creative director.
Burberry is now aiming to double sales of leather goods, shoes and womenswear in the medium term. It is also targeting annual revenue of £4bn over the same time frame, with high single digit growth and “good margin progression”.
Akeroyd succeeded previous CEO Marco Gobbetti, who was midway through an effort to take the Burberry brand further upmarket when he left to head Italian competitor Salvatore Ferragamo.
Yorkshire-born Lee was previously head designer at Bottega Veneta, where he helped reinvigorate the Kering brand before leaving for undisclosed reasons a year ago.
During his four-year tenure, Tisci tried to make the Burberry brand more visible by placing a monogram logo on products including handbags, a recipe that has worked for other brands such as Louis Vuitton.
Lee is due to present his first collection for Burberry during London Fashion Week in February.