London: Burberry Group Plc said it will add new leather goods and accessories and refurbish its stores as Chief Executive Officer Marco Gobbetti lays out his strategy for reigniting growth at the trench-coat maker.
The update came as the London-based company reported first-half revenue of £1.26 billion (Dh6 billion, $1.66 billion), 1.6 per cent above the average analyst estimate, giving Gobbetti a boost as he prepares for a future without creative head and former CEO Christopher Bailey, who’s set to leave next year.
“To win with this consumer, we must sharpen our brand positioning,” Burberry said in a statement. “This will require us to change our approach to product, communication and customer experience.”
First-half revenue rose 4 per cent on an underlying basis, above analyst expectations. Growth was strongest in the company’s own stores in the Asia-Pacific region, the company said.
Among the biggest challenges for the new chief will be to fix the problems in Burberry’s US business, where the company is cutting back on sales and trimming its exposure to department stores amid concern that its brand has gotten diluted.
