Burberry credits marketing for pushing revenues past £1bn for first time
Burberry is crediting increased investment in marketing and ‘brand momentum’ with helping push revenues past the £1bn mark for the 1st time because it prepares for CEO Angela Ahrendts’ departure to Apple next year.
Burberry’s Christmas marketing campaign
In the six months to 30 September, revenues were up 17 per cent compared with an analogous period a year ago to £1.031bn, up from £883m a year ago. Pre-tax profits were almost flat, rising from £173m to £174m, better than expected in the beginning of the year and reflecting costs related to bringing its beauty business in-house.
The financial update is the primary because it was announced CEO Angel Ahrendts could be leaving to hitch Apple and can get replaced by chief creative officer Christopher Bailey. Speaking on a conference call with analysts, she said Burberry is targeted on executing its festive business plan, that’s in keeping with the theme Burberry with love, to enhance sales over the Christmas quarter.
In an announcement Ahrendts added: “The first half performance reflects the continued strength of our global brand momentum. We remain fascinated by executing our retail, digital and marketing strategies within the all-important third quarter and in what remains an uncertain macro environment.”
Ahrendts said digital remains to be a key point of difference for Burberry when compared with its competitors. In-store iPads now account for 30 per cent of its online business and it has click-and-collect services in additional than 80 locations globally.
It is continuous to lean towards digital for its marketing. As an instance it collaborated with Google for Burberry Kisses, which allowed users to capture and send a kiss, and Apple to film its Spring Summer 2014 runway show.
Outerwear also remains on the core of its marketing activity and grace is being integrated into brand promotions following its decision to take control of the business. Burberry announced its biggest fragrance launch so far in September, with a worldwide campaign inspired by British music.
Bailey is because of take over the executive executive role in the midst of next year, but says it’s “business as usual” on the brand with a continued give attention to its positioning in “Britishness” and talking to a higher generation of shoppers via digital. The firm is making a new chief design officer role to be able to set the creative direction and vision of the emblem.
“We have taken back control of licensing and the logo, the results of that’s now we have built an organization with a particular and consistent perspective that defines Burberry today. There’s still fuel inside the tank,” said Bailey.
Meanwhile, TopShop, BHS and Dorothy Perkins owner Arcadia has posted a 2.7 per cent drop in sales for the year to 31 August from stores opened before the beginning of its financial year. The drop in sales drove operating profit right down to £225.2m, from £220.9m within the previous financial year.
The company said it was attempting to mitigate “challenging trading conditions” by “engaging our customer across multi-channels”.
Topshop, as an example, partnered with mobile sound app Chirp for London Fashion Week in September to create an app that permit users quickly share information with people within the same place via a ‘chirp’ sound.
TopShop recently appointed Sheena Sauvaire to the executive marketing officer role, following the departure of Justin Cooke who has left to form his own agency.article Sauvaire is liable for enhancing its multi-channel offer.