Burberry profits drop 21% as Gobbetti prepares to take over
By Ben Stevens - May 18th, 13:50
Wavering wholesale demand in the US has hit Burberry’s margins as the retailer posts a five per cent dip in reported pre-tax profits to £394.8 million.
Its EBITDA dropped 21 per cent to £462m, however, this came in ahead of analyst’s predictions raising the company’s share price to the highest level in six weeks.
Total revenues were down two per cent to £2.8 billion in the year to March 31, but the weak pound saw the luxury retailers adjusted profits rise 10 per cent in reported exchange rates.
Despite this promising outcome, the impact of the weak pound is predicted to cost the retailer £30 million in the coming year.
The retailer said it was on track to achieving cost reductions of £100 million a year by 2019, reductions that partially offset the waning sales across the US.
“2017 was a year of transition for Burberry in a fast-changing luxury market,” chief executive Christopher Bailey said.
“The actions we have taken to lay the foundations for future growth are yielding early benefits and I remain confident that these will build over time."
“Marco Gobbetti assumes the role of CEO from July. With his extensive experience in the sector, we will build on these foundations to elevate and strengthen the brand further and take Burberry to the next level as a global luxury retail and digital business."
“I am excited to work closely with him in this next chapter.” Retail Gazette
L'Oreal finalises sale of The Body Shop
27/06/2017 - 12:54
French beauty products giant L'Oreal said Tuesday it has a signed a contract to sell The Body Shop, which it has owned for over a decade, to Brazil's Natura Cosmeticos for one billion euros.
Fixed retail prices could disappear within 5 years
27/06/2017 - 11:07
The UK is likely to see set product prices disappear within five-years as new digital pricing technology is adopted across mainstream retailers.
Retail in airports to grow to $49 billion by 2021
27/06/2017 - 09:29
Global airport retailing will grow 27% to $49 billion by 2021, according to research from GlobalData.
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Conventional wisdom has had it that luxury retail — including clothes, shoes and accessories — is immune to movements in the economy, especially the downward kind.
Foreign brands feel the pinch in tough times
26/06/2017 - 09:38
Last year, Australia-based retailer Cotton On opened its largest flagship store in the world at Mall of Africa in Johannesburg.