UK-founded luxury brand Burberry is making progress in its turnaround plans, recording 4% sales growth in the US. This was however offset by a 9% drop across Asia and 2% slide in EMEIA.
Its Burberry Forward strategy aims to generate an “improvement in brand desirability” with focus on outerwear and scarves.
The brand reset centres around “It’s Always Burberry Weather” outerwear campaign and and “Wrapped in Burberry” festive campaign – which the brand credited for outerwear and scarves continuing to outperform globally.
However it faced “headwinds” in the final quarter, with retail revenue landing at £659mn, down 7% at reported exchange rates.
“Since launching Burberry Forward in November, we have moved at pace to advance our strategy to reignite brand desire, improve our performance and drive long-term value creation,” said Joshua Schulman, chief executive officer, Burberry.
“We are encouraged by the response to our “It’s Always Burberry Weather” outerwear campaign and “Wrapped in Burberry” festive campaign. These activations resonated with a broad range of luxury customers leading to an improvement in brand desirability and strength in outerwear and scarves.
“The acceleration of our core categories reinforces our belief that Burberry has the most opportunity where we have the most authenticity and that our strategic plan will deliver sustainable, profitable growth over time. However, we recognise that it is still very early in our transformation and there remains much to do.”
Looking ahead, Burberry stressed it would act quickly to stabilise the business and position the brand for a return to sustainable, profitable growth in an uncertain macroeconomic environment.
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