Burberry is a global luxury brand active in apparel (women’s 30%, men’s 23%, children’s 4%), accessories (36%) and beauty (7%), selling through a diversified network of retail (68%), wholesale (29%) and licensing channels (3%). The group has about 215 retail stores, 220 concessions, 55 outlets and 68 franchise stores.
On April 15, Burberry published its 2H15 results and on May 20, the FY14 results on 20 May. In the more recent time, investors have been concerned with the high number of management changes. Now all eyes are on the new CEO who is fine-tuning Burberry’s strategy. Greater emphasis on the brand image and streamlining the sales and administration process should lead to margin growth. While the short term is uncertain and a number of challenges need to be solved, the longer term outlook is brilliant as the company has numerous growth opportunities.