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Burberry
Burberry sustained its financial momentum with an
18% increase in revenues and a 30% increase in profits. This strong performance
was delivered despite the events of September 11, which affected sales
in many luxury goods companies.
Investment continued in initiatives to leverage the brand’s potential.
By enhancing its store portfolio, expanding product ranges, increasing
control of distribution channels and strengthening its management team,
Burberry established a solid platform for future growth.
The Burberry menswear, womenswear and accessories collections are showcased
in 69 directly-operated stores and concessions, as well as via leading
retailers worldwide. Six new stores were opened during the year, including
locations in Beverly Hills, California and SoHo, New York. Autumn 2002
will see the opening of flagship stores on 57th Street in New York, as
well as in Barcelona, Spain and Knightsbridge, London. The design of these
stores, as well as that of the new shop-in-shop programme that is being
rolled out to wholesale customers worldwide, is an evolution of the concept
created for Burberry’s first flagship store on New Bond Street in London,
which opened in August 2000.
The Burberry Prorsum collections were showcased on the catwalks in Milan
during the respective men’s and women’s fashion weeks, while the Burberry
London collections were presented during London Fashion Week. The accessories
range has continued its expansion, with sales of this high-margin classification
up by 28%. The year also saw the launch of product extensions based on
Burberry Touch fragrance, with the debut of a bath and body line and Burberry
Baby Touch for children.
Burberry took steps to increase its control of the value chain with the
acquisition of the operations of its distributors in Hong Kong, Singapore
and Australia, as well as a separate agreement to acquire its distribution
channel in Korea. As a result, Burberry will now have taken direct control
of distribution in all key international markets, with the exception of
Japan. In Japan, the licensing arrangements renegotiated in 2000 made
a significant contribution to overall profit.
Burberry’s management team was further strengthened by the appointment
of Thomas O’Neill to the newly created post of President Worldwide.
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