Burberry has received exceptional response to its new creative vision including rebranding and Riccardo Tisci’s debut collection. It had successful launch of its new go-to-market model with social selling innovation contributing to building brand heat. The company also experienced shift of consumer perception and strong wholesale response to new product.
Burberry had appointed Riccardo Tisci as its chief creative officer, effective March 12, 2018.
The company began to translate Riccardo’s creative vision to its stores, starting at their home city, London in order to align with its luxury positioning. It has closed a net seven stores during the first 26 weeks of 2018, bringing the total net store closures in the last 12 months to 19. Store openings included the relocation and expansion of its Dubai flagship and openings in Shin Kong Place, Xian (China).
For the first time in 20 years Burberry introduced a new logo, evoking the new spirit, mood and personality of the brand, and a refreshed Thomas Burberry monogram inspired by its heritage.
Burberry’s revenue grew 4 per cent at CER to £1,220 million during the first 26 weeks of 2018, excluding the impact of beauty wholesale revenue. In terms of business, both Asia Pacific and Americas grew by a mid-single digit percentage. The EMEIA region was broadly stable year-on-year. There was good growth in the digital market. The company saw a positive response to their newly launched handbags and the elevated polo shirt offer introduced in the summer of 2018.
As per the forecast for FY 2019 by the company, the net space reduction in stores is set to impact retail revenue by minus 1 per cent, as the programme of store rationalisation and relocation continues. The wholesale revenue excluding beauty is now expected to be up by a mid-single digit percentage due to anticipated growth from luxury accounts more than offsetting rationalisation. The cumulative cost savings is expected to be £100m, an incremental £36m on FY 2018.
“We are energised by the early results as we begin to transform and reposition Burberry. The initial response from influencers, press, buyers and customers to our new creative vision and Riccardo’s debut collection Kingdom has been exceptional. Mindful that we are only in the first phase of our multi-year plan, we continue to manage dynamically through the transition. We confirm our outlook for the full year,” said chief executive officer, Marco Gobbetti of Burberry.