The luxury group's leading label posted record results in 2018, and is expecting to grow at twice the market’s rate in 2019, reaching a 40% operating margin, as it prepares to launch a high jewellery line.
Burberry was upbeat on Thursday morning as it reported half-year results saying that its “brand repositioning is under way, with strong initial response” and that it’s “energised by the early results.”
Beauty products maker Coty Inc missed revenue estimates for the second consecutive quarter on Wednesday, as hurricane Florence in the United States disrupted supplies of its luxury products to retailers.
Burberry is under attack over its strategy for disposing of surplus stock with criticism similar to that faced by H&M, showing that it's not only the mass-market that destroys unsold goods rather than recycling them.
Burberry seems to be on track with its transformation plan with sales and profits not suffering as it enters a period of fast change. But tough comparisons and regional variations also had an impact on its latest year.
Burberry has announced a “strategic investment” in leathergoods as it moves from a mainly apparel focus to grow its accessories business, buying a luxury leathergoods firm from longstanding Italian partner CF&P.