Burberry 

	1999 £m	1998 £m
Sales	207	255
Trading Profit	10.7	24.9
Proportion of Group Trading Profit	2%	6%
Net Assets	85.5	103.7

As anticipated a year ago, Burberry has had a difficult twelve months because of the recession in Asia and the over-reliance of the business on Asian trade. Sales for the year decreased by 19% to £207m and trading profit fell from £24.9m to £10.7m.

These results, however, disguise a year of significant development for Burberry. With its much strengthened management team in place, the pace of change in Burberry has accelerated markedly. Every aspect of the business – brand development, marketing, retail distribution, manufacturing and sourcing – has been reviewed and improved.

The business is being repositioned as an international luxury brand. The British heritage of Burberry with its distinctive check and trench and the history of Thomas Burberry, the Company’s founder, with his innovative fabric research and invention of gabardine, is the platform upon which the core values of the brand will be refreshed and re-established.

Progress is being made towards making the product, the marketing and the advertising coherent worldwide. An overall review of the Company’s licensing programme is under way to bring a coherent "one world" look to the brand.

We have improved the distribution of Burberry products with their entry into a number of leading department stores on both sides of the Atlantic. Our own retail shops in the United States, London and Paris have been refurbished to demonstrate better the new product positioning in a more neutral and modern environment.

 

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