Saturday 17 August 2019

Check out: Weak pound a lifeline for re-branded Burberry

Brand new: A shopper passes a Burberry store in Hong Kong
Brand new: A shopper passes a Burberry store in Hong Kong

Sarah White

Strong demand for designer Riccardo Tisci's new fashion ranges, and tourists' exploitation of the weak pound, helped revenue at British label Burberry grow faster than expected in the first quarter, sending its shares soaring as a high-stakes overhaul showed early signs of promise.

The luxury brand said sales to Chinese consumers in particular had picked up, boosted in part by younger shoppers' positive response to its revamped, logo-strewn products. It had previously lagged behind rivals among this key clientele.

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Burberry shares soared 16pc Tuesday - having their best day in a decade.

More than a year after CEO Marco Gobbetti hit the reset button on Burberry in a bid to promote a more upmarket image, the plan faced its biggest test yet with new Tisci products accounting for half the wares in its shops by the end of June.

So far, his edgier twists on classic Burberry products like the trench coat, appear to have struck a chord.

Chief Financial Officer Julie Brown said items like the new monogram collection - based on a new logo-style print in a step away from Burberry's camel, red and black check trademark - had sold well with millennials, or roughly 23- to 38-year-olds, from China.

Reuters

Irish Independent

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