Burberry today said 40% of its online sales took place via mobile devices in its latest financial year.
At the same time, the upmarket fashion retailer, ranked Top250 in IRUK Top500 research, said its collaboration with Farfetch had expanded its reach to more than 150 countries.
The update came as Burberry reported revenue of £2.73bn in the year to March 31, 1% down on the previous year. Retail sales of £2.17bn were 2% ahead of last time, while like-for-like sales, which strip out the effect of store openings and closures were 3% up on last time. Pre-tax profits of £471m were 5% up on last time.
Chief executive Marco Gobbetti said: “In a year of transition we are pleased with our performance as we began to executive our strategy. While the task of transforming Burberry is still before us, the first steps we implemented to re-energise our brand are showing promising early signs.”
This is the first major strategic update since Burberry last year said it would focus on the luxury customer.
Here’s what it said today about its multichannel strategy.
The retailer says it’s on track to position Burberry in “the most rewarding and enduring part of the luxury industry, where we can deliver long-term value”. In support of this, its strategic focus is on retail excellence.
Burberry said its online sales had “delivered good growth with particular strength in Asia”. Forty per cent of its online sales took place via mobile devices. A new digital clientelling tool is being rolled out, with conversion increasing as a result, while digital platforms now feature “more curated and editorialised content, generating increased engagement”.
Burberry also started a collaboration with Farfetch, extending its reach to more customers and to more than 150 countries.
Meanwhile, the retailer has started a programme of strategic retail store closures as part of its “evolution of the store network”. A net 20 stores have closed so far, including 12 mainline stores, two concessions and six outlet stores.
Sales growth was strongest in mainland China, while sales in Hong Kong were up and in Korea down overall. Sales in Europe and the UK were slightly down, while sales grew moderately in the US.
Image courtesy of Burberry